Bill Text: MS HB986 | 2026 | Regular Session | Introduced
Bill Title: Insurance Department Fraud Detection Trust Fund; rename Insurance Department Fund and redesignate as a special fund.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2026-02-03 - Died In Committee [HB986 Detail]
Download: Mississippi-2026-HB986-Introduced.html
MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Insurance; Appropriations A
By: Representative Yancey
House Bill 986
AN ACT TO CREATE THE INSURANCE DEPARTMENT FRAUD DETECTION TRUST FUND AS A SPECIAL FUND IN THE STATE TREASURY; TO AMEND SECTIONS 83-2-33 AND 83-5-72, MISSISSIPPI CODE OF 1972, TO RENAME THE INSURANCE DEPARTMENT FUND AS THE "INSURANCE DEPARTMENT FRAUD DETECTION TRUST FUND"; TO INCREASE THE MAXIMUM CONTRIBUTIONS FROM PROPERTY AND CASUALTY INSURANCE COMPANIES, LIFE, HEALTH AND ACCIDENT INSURANCE COMPANIES, AND HEALTH MAINTENANCE ORGANIZATIONS WHICH MAY BE DEPOSITED INTO THE SPECIAL FUND; TO DELETE THE REQUIREMENT THAT MONIES COLLECTED FROM THESE COMPANIES BE DEPOSITED INTO THE STATE GENERAL FUND AND THAT EXPENSES OF THE DEPARTMENT OF INSURANCE BE DEFRAYED BY STATE GENERAL FUND APPROPRIATIONS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) The Legislature finds that with the advent of advanced technology such as artificial intelligence and digitalization, there has been an increase in insurance fraud due to deepfakes, fake documents, synthetic identity fraud and cyberfraud, resulting in increased insurance losses and increased insurance premiums. Accordingly, the Legislature further finds and declares that the use of advanced analytics to identify insurance fraud and identify common attributes in arson investigations is now a necessary tool that must be utilized in order to combat this problem.
(2) There is created in the State Treasury a special fund to be designated as the "Insurance Department Fraud Detection Trust Fund." Monies from the special fund must be used to fund resources to assist with the detection of insurance fraud, cybersecurity review, arson investigations, and any other action that assists the Commissioner of Insurance in carrying out the commissioner's statutory and regulatory duties. The Legislature may appropriate such amount as may be necessary to fulfill the obligations created under this section from the State General Fund to this special fund. In addition, the Commissioner of Insurance may apply for federal or private grants that will provide funds for the program. Unexpended amounts remaining in the special fund at the end of a fiscal year may not lapse into the State General Fund, and any interest earned on monies in the special fund must be deposited to the credit of the fund.
SECTION 2. Section 83-2-33, Mississippi Code of 1972, is amended as follows:
83-2-33. All property and
casualty insurance companies doing business in this state shall contribute
annually, at such times as the Insurance Commissioner shall determine, in
proportion to their gross premiums collected within the State of Mississippi
during the preceding year, to a special fund in the State Treasury to be known
as the "Insurance Department Fraud Detection Trust Fund" to be
expended by the Insurance Commissioner in the payment of the expenses of the
Department of Insurance as the commissioner may deem necessary. The
commissioner is * * *
authorized to employ such actuarial and other assistance as shall be necessary
to carry out the duties of the department; and such employees shall be under
the authority and direction of the Insurance Commissioner. The amount to be
contributed annually to the fund shall be fixed each year by the Insurance
Commissioner at a percentage of the gross premiums so collected during the
preceding year. However, a minimum assessment of One Hundred Dollars ($100.00)
shall be charged to each licensed property and casualty insurance company
regardless of the gross premium amount collected during the preceding year.
The total contributions
collected for the Insurance Department Fraud Detection Trust Fund shall
not exceed the sum of * * * One Million Dollars
($1,000,000.00) in each fiscal year.
* * *
From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.
SECTION 3. Section 83-5-72, Mississippi Code of 1972, is amended as follows:
83-5-72. All life, health
and accident insurance companies and health maintenance organizations doing
business in this state shall contribute annually, at such times as the
Insurance Commissioner shall determine, in proportion to their gross premiums
collected within the State of Mississippi during the preceding year, to a
special fund in the State Treasury to be known as the "Insurance
Department Fraud Detection Trust Fund" to be expended by the
Insurance Commissioner in the payment of the expenses of the Department of
Insurance as the commissioner may deem necessary. The commissioner is * * * authorized to employ such actuarial and
other assistance as shall be necessary to carry out the duties of the
department; and the employees shall be under the authority and direction of the
Insurance Commissioner. The amount to be contributed annually to the fund
shall be fixed each year by the Insurance Commissioner at a percentage of the
gross premiums so collected during the preceding year. However, a minimum
assessment of One Hundred Dollars ($100.00) shall be charged each licensed
life, health and accident insurance company regardless of the gross premium
amount collected during the preceding year.
The total contributions
collected for the Insurance Department Fraud Detection Trust Fund shall
not exceed the sum of * * * One Million Dollars
($1,000,000.00) in each fiscal year.
* * *
From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.
SECTION 4. This act shall take effect and be in force from and after July 1, 2026.
