Bill Text: MS SB2701 | 2026 | Regular Session | Introduced
Bill Title: Insurance Fraud Detection Act; establish trust fund to assist Mississippi Insurance Department in cyber fraud.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2026-02-11 - Died In Committee [SB2701 Detail]
Download: Mississippi-2026-SB2701-Introduced.html
MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Insurance
By: Senator(s) Michel
Senate Bill 2701
AN ACT TO CREATE THE INSURANCE FRAUD DETECTION ACT; TO CREATE THE INSURANCE DEPARTMENT FRAUD DETECTION TRUST FUND; TO AMEND SECTION 83-2-33, MISSISSIPPI CODE OF 1972, TO RENAME THE INSURANCE DEPARTMENT FUND TO THE INSURANCE DEPARTMENT FRAUD DETECTION TRUST FUND, TO INCREASE THE TOTAL CONTRIBUTIONS FROM $750,000.00 TO $1,000,000.00 ANNUALLY, TO REMOVE THE REQUIREMENT THESE MONIES BE DEPOSITED IN THE GENERAL FUND; TO AMEND SECTION 83-5-72, MISSISSIPPI CODE OF 1972, TO RENAME THE INSURANCE DEPARTMENT FUND TO THE INSURANCE DEPARTMENT FRAUD DETECTION TRUST FUND, TO INCREASE THE TOTAL CONTRIBUTIONS FROM $750,000.00 TO $1,000,000.00 ANNUALLY, TO REMOVE THE REQUIREMENT THESE MONIES BE DEPOSITED IN THE GENERAL FUND; AND FOR OTHER RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The Mississippi 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. 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.
SECTION 2. There is created in the State Treasury a special fund to be designated as the "Insurance Department Fraud Detection Trust Fund." The monies from this fund shall 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 the carrying out of his statutory and regulatory duties. The Legislature may appropriate that amount necessary to fulfill the obligations created under this section from the State General Fund to such special fund. Furthermore, the Commissioner of Insurance is authorized to apply for any federal or private grants that will provide funds for this program. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund.
SECTION 3. 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 hereby 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 4. 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 hereby 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 5. This act shall take effect and be in force from and after July 1, 2026.
