Insurance Department Fraud Detection Trust Fund; rename Insurance Department Fund and redesignate as a special fund.

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To: Insurance;
Appropriations A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Turner, Arnold

HOUSE BILL NO. 1020

AN ACT TO CREATE THE INSURANCE DEPARTMENT FRAUD DETECTION 1
TRUST FUND AS A SPECIAL FUND IN THE STATE TREASURY; TO AMEND 2
SECTIONS 83-2-33 AND 83-5-72, MISSISSIPPI CODE OF 1972, TO RENAME 3
THE INSURANCE DEPARTMENT FUND AS THE "INSURANCE DEPARTMENT FRAUD 4
DETECTION TRUST FUND"; TO INCREASE THE MAXIMUM CONTRIBUTIONS FROM 5
PROPERTY AND CASUALTY INSURANCE COMPANIES, LIFE, HEALTH AND 6
ACCIDENT INSURANCE COMPANIES, AND HEALTH MAINTENANCE ORGANIZATIONS 7
WHICH MAY BE DEPOSITED INTO THE SPECIAL FUND; TO DELETE THE 8
REQUIREMENT THAT MONIES COLLECTED FROM THESE COMPANIES BE 9
DEPOSITED INTO THE STATE GENERAL FUND AND THAT EXPENSES OF THE 10
DEPARTMENT OF INSURANCE BE DEFRAYED BY STATE GENERAL FUND 11
APPROPRIATIONS; AND FOR RELATED PURPOSES. 12
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 13
SECTION 1. (1) The Legislature finds that with the advent 14
of advanced technology such as artificial intelligence and 15
digitalization, there has been an increase in insurance fraud due 16
to deepfakes, fake documents, synthetic identity fraud and 17
cyberfraud, resulting in increased insurance losses and increased 18
insurance premiums. Accordingly, the Legislature further finds 19
and declares that the use of advanced analytics to identify 20
insurance fraud and identify common attributes in arson 21
investigations is now a necessary tool that must be utilized in 22
order to combat this problem. 23
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(2) There is created in the State Treasury a special fund to 24
be designated as the "Insurance Department Fraud Detection Trust 25
Fund." Monies from the special fund must be used to fund 26
resources to assist with the detection of insurance fraud, 27
cybersecurity review, arson investigations, and any other action 28
that assists the Commissioner of Insurance in carrying out the 29
commissioner's statutory and regulatory duties. The Legislature 30
may appropriate such amount as may be necessary to fulfill the 31
obligations created under this section from the State General Fund 32
to this special fund. In addition, the Commissioner of Insurance 33
may apply for federal or private grants that will provide funds 34
for the program. Unexpended amounts remaining in the special fund 35
at the end of a fiscal year may not lapse into the State General 36
Fund, and any interest earned on monies in the special fund must 37
be deposited to the credit of the fund. 38
SECTION 2. Section 83-2-33, Mississippi Code of 1972, is 39
amended as follows: 40
83-2-33. All property and casualty insurance companies doing 41
business in this state shall contribute annually, at such times as 42
the Insurance Commissioner shall determine, in proportion to their 43
gross premiums collected within the State of Mississippi during 44
the preceding year, to a special fund in the State Treasury to be 45
known as the "Insurance Department Fraud Detection Trust Fund" to 46
be expended by the Insurance Commissioner in the payment of the 47
expenses of the Department of Insurance as the commissioner may 48
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deem necessary. The commissioner is * * * authorized to employ 49
such actuarial and other assistance as shall be necessary to carry 50
out the duties of the department; and such employees shall be 51
under the authority and direction of the Insurance Commissioner. 52
The amount to be contributed annually to the fund shall be fixed 53
each year by the Insurance Commissioner at a percentage of the 54
gross premiums so collected during the preceding year. However, a 55
minimum assessment of One Hundred Dollars ($100.00) shall be 56
charged to each licensed property and casualty insurance company 57
regardless of the gross premium amount collected during the 58
preceding year. 59
The total contributions collected for the Insurance 60
Department Fraud Detection Trust Fund shall not exceed the sum 61
of * * * One Million Dollars ($1,000,000.00) in each fiscal year. 62
* * * 63
From and after July 1, 2016, no state agency shall charge 64
another state agency a fee, assessment, rent or other charge for 65
services or resources received by authority of this section. 66
SECTION 3. Section 83-5-72, Mississippi Code of 1972, is 67
amended as follows: 68
83-5-72. All life, health and accident insurance companies 69
and health maintenance organizations doing business in this state 70
shall contribute annually, at such times as the Insurance 71
Commissioner shall determine, in proportion to their gross 72
premiums collected within the State of Mississippi during the 73
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ST: Insurance Department Fraud Detection Trust
Fund; rename Insurance Department Fund and
redesignate as a special fund.
preceding year, to a special fund in the State Treasury to be 74
known as the "Insurance Department Fraud Detection Trust Fund" to 75
be expended by the Insurance Commissioner in the payment of the 76
expenses of the Department of Insurance as the commissioner may 77
deem necessary. The commissioner is * * * authorized to employ 78
such actuarial and other assistance as shall be necessary to carry 79
out the duties of the department; and the employees shall be under 80
the authority and direction of the Insurance Commissioner. The 81
amount to be contributed annually to the fund shall be fixed each 82
year by the Insurance Commissioner at a percentage of the gross 83
premiums so collected during the preceding year. However, a 84
minimum assessment of One Hundred Dollars ($100.00) shall be 85
charged each licensed life, health and accident insurance company 86
regardless of the gross premium amount collected during the 87
preceding year. 88
The total contributions collected for the Insurance 89
Department Fraud Detection Trust Fund shall not exceed the sum 90
of * * * One Million Dollars ($1,000,000.00) in each fiscal year. 91
* * * 92
From and after July 1, 2016, no state agency shall charge 93
another state agency a fee, assessment, rent or other charge for 94
services or resources received by authority of this section. 95
SECTION 4. This act shall take effect and be in force from 96
and after July 1, 2026. 97