KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to Mississippi

SB2701 • 2026

Insurance Fraud Detection Act; establish trust fund to assist Mississippi Insurance Department in cyber fraud.

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.

Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Michel
Last action
2026-02-11
Official status
Dead
Effective date
July 1, 20

Plain English Breakdown

The official source material does not provide specific details on how the increased funding will be used to combat fraud.

Insurance Fraud Detection Act

This bill creates a fund to help the Mississippi Insurance Department detect insurance fraud.

What This Bill Does

  • Creates the 'Insurance Department Fraud Detection Trust Fund' in the State Treasury.
  • Increases annual contributions to this fund from $750,000 to $1,000,000.
  • Removes the requirement that these funds be deposited into the General Fund.
  • Amends existing laws to rename certain funds as 'Insurance Department Fraud Detection Trust Funds' and adjust contribution limits.

Who It Names or Affects

  • The Mississippi Insurance Department
  • Property and casualty insurance companies doing business in Mississippi
  • Life, health, and accident insurance companies operating in Mississippi

Terms To Know

Insurance Fraud Detection Trust Fund
A special fund created to help the Insurance Commissioner fight insurance fraud.
Commissioner of Insurance
The person in charge of regulating and overseeing insurance companies in Mississippi.

Limits and Unknowns

  • This bill did not pass during its session.
  • It is unclear how the increased funding will specifically be used to combat fraud.

Bill History

  1. 2026-02-11 Mississippi Legislative Bill Status System

    02/11 (S) Died In Committee

  2. 2026-02-11 Mississippi Legislative Bill Status System

    02/11 (S) Recommitted to Committee

  3. 2026-02-03 Mississippi Legislative Bill Status System

    02/03 (S) Title Suff Do Pass

  4. 2026-01-19 Mississippi Legislative Bill Status System

    01/19 (S) Referred To Insurance

Official Summary Text

Insurance Fraud Detection Act; establish trust fund to assist Mississippi Insurance Department in cyber fraud.

Current Bill Text

Read the full stored bill text 
S. B. No. 2701 *SS26/R621* ~ OFFICIAL ~ G3/5
26/SS26/R621
PAGE 1 (rdd\kr)

To: Insurance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Michel

SENATE BILL NO. 2701

AN ACT TO CREATE THE INSURANCE FRAUD DETECTION ACT; TO CREATE 1
THE INSURANCE DEPARTMENT FRAUD DETECTION TRUST FUND; TO AMEND 2
SECTION 83-2-33, MISSISSIPPI CODE OF 1972, TO RENAME THE INSURANCE 3
DEPARTMENT FUND TO THE INSURANCE DEPARTMENT FRAUD DETECTION TRUST 4
FUND, TO INCREASE THE TOTAL CONTRIBUTIONS FROM $750,000.00 TO 5
$1,000,000.00 ANNUALLY, TO REMOVE THE REQUIREMENT THESE MONIES BE 6
DEPOSITED IN THE GENERAL FUND; TO AMEND SECTION 83-5-72, 7
MISSISSIPPI CODE OF 1972, TO RENAME THE INSURANCE DEPARTMENT FUND 8
TO THE INSURANCE DEPARTMENT FRAUD DETECTION TRUST FUND, TO 9
INCREASE THE TOTAL CONTRIBUTIONS FROM $750,000.00 TO $1,000,000.00 10
ANNUALLY, TO REMOVE THE REQUIREMENT THESE MONIES BE DEPOSITED IN 11
THE GENERAL FUND; AND FOR OTHER RELATED PURPOSES. 12
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 13
SECTION 1. The Mississippi Legislature finds that with the 14
advent 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. The use of advanced analytics to identify 19
insurance fraud and identify common attributes in arson 20
investigations is now a necessary tool that must be utilized in 21
order to combat this problem. 22
S. B. No. 2701 *SS26/R621* ~ OFFICIAL ~
26/SS26/R621
PAGE 2 (rdd\kr)

SECTION 2. There is created in the State Treasury a special 23
fund to be designated as the "Insurance Department Fraud Detection 24
Trust Fund." The monies from this fund shall be used to fund 25
resources to assist with the detection of insurance fraud, 26
cybersecurity review, arson investigations, and any other action 27
that assists the Commissioner of Insurance in the carrying out of 28
his statutory and regulatory duties. The Legislature may 29
appropriate that amount necessary to fulfill the obligations 30
created under this section from the State General Fund to such 31
special fund. Furthermore, the Commissioner of Insurance is 32
authorized to apply for any federal or private grants that will 33
provide funds for this program. Unexpended amounts remaining in 34
the fund at the end of a fiscal year shall not lapse into the 35
State General Fund, and any interest earned on amounts in the fund 36
shall be deposited to the credit of the fund. 37
SECTION 3. Section 83-2-33, Mississippi Code of 1972, is 38
amended as follows: 39
83-2-33. All property and casualty insurance companies doing 40
business in this state shall contribute annually, at such times as 41
the Insurance Commissioner shall determine, in proportion to their 42
gross premiums collected within the State of Mississippi during 43
the preceding year, to a special fund in the State Treasury to be 44
known as the "Insurance Department Fraud Detection Trust Fund" to 45
be expended by the Insurance Commissioner in the payment of the 46
expenses of the Department of Insurance as the commissioner may 47
S. B. No. 2701 *SS26/R621* ~ OFFICIAL ~
26/SS26/R621
PAGE 3 (rdd\kr)

deem necessary. The commissioner is hereby authorized to employ 48
such actuarial and other assistance as shall be necessary to carry 49
out the duties of the department; and such employees shall be 50
under the authority and direction of the Insurance Commissioner. 51
The amount to be contributed annually to the fund shall be fixed 52
each year by the Insurance Commissioner at a percentage of the 53
gross premiums so collected during the preceding year. However, a 54
minimum assessment of One Hundred Dollars ($100.00) shall be 55
charged to each licensed property and casualty insurance company 56
regardless of the gross premium amount collected during the 57
preceding year. 58
The total contributions collected for the Insurance 59
Department Fraud Detection Trust Fund shall not exceed the sum 60
of * * * One Million Dollars ($1,000,000.00) in each fiscal year. 61
* * * 62
From and after July 1, 2016, no state agency shall charge 63
another state agency a fee, assessment, rent or other charge for 64
services or resources received by authority of this section. 65
SECTION 4. Section 83-5-72, Mississippi Code of 1972, is 66
amended as follows: 67
83-5-72. All life, health and accident insurance companies 68
and health maintenance organizations doing business in this state 69
shall contribute annually, at such times as the Insurance 70
Commissioner shall determine, in proportion to their gross 71
premiums collected within the State of Mississippi during the 72
S. B. No. 2701 *SS26/R621* ~ OFFICIAL ~
26/SS26/R621
PAGE 4 (rdd\kr)
ST: Insurance Fraud Detection Act; establish
trust fund to assist Mississippi Insurance
Department in cyber fraud.
preceding year, to a special fund in the State Treasury to be 73
known as the "Insurance Department Fraud Detection Trust Fund" to 74
be expended by the Insurance Commissioner in the payment of the 75
expenses of the Department of Insurance as the commissioner may 76
deem necessary. The commissioner is hereby authorized to employ 77
such actuarial and other assistance as shall be necessary to carry 78
out the duties of the department; and the employees shall be under 79
the authority and direction of the Insurance Commissioner. The 80
amount to be contributed annually to the fund shall be fixed each 81
year by the Insurance Commissioner at a percentage of the gross 82
premiums so collected during the preceding year. However, a 83
minimum assessment of One Hundred Dollars ($100.00) shall be 84
charged each licensed life, health and accident insurance company 85
regardless of the gross premium amount collected during the 86
preceding year. 87
The total contributions collected for the Insurance 88
Department Fraud Detection Trust Fund shall not exceed the sum 89
of * * * One Million Dollars ($1,000,000.00) in each fiscal year. 90
* * * 91
From and after July 1, 2016, no state agency shall charge 92
another state agency a fee, assessment, rent or other charge for 93
services or resources received by authority of this section. 94
SECTION 5. This act shall take effect and be in force from 95
and after July 1, 2026. 96