Section 27-12A-1 Definitions. As used in this chapter, the following terms shall have the following meanings: (1) COMMISSIONER. The Alabama Commissioner of Insurance or his or her designee. (2) DEPARTMENT. The Alabama Department of Insurance. (3) INSURANCE. As defined in Section 27-1-2, and specifically including any contract, arrangement, or agreement, in which one undertakes to […]
Section 27-12A-1.1 Legislative intent. The Legislature finds that the business of insurance involves many transactions that have potential for fraud, abuse, and other illegal activities. This chapter is intended to permit full utilization of the expertise of the Department of Insurance to investigate, discover, and prosecute insurance fraud and assist and receive assistance from state, […]
Section 27-12A-10 Promulgation of rules. The Commissioner of Insurance may adopt reasonable rules for the implementation and administration of this chapter. (Act 2012-429, p. 1170, §5.)
Section 27-12A-2 Insurance fraud – definition. A person commits the crime of insurance fraud if, knowingly and with intent to defraud, he or she commits, or conceals any material information concerning, one or more of the following acts: (1) The solicitation or acceptance of new or renewal insurance risks on behalf of an insurer, reinsurer, […]
Section 27-12A-3 Insurance fraud in the first degree. (a) An act prohibited by Section 27-12A-2, in cases where the loss or potential loss exceeds one thousand dollars ($1,000), constitutes insurance fraud in the first degree. (b) Insurance fraud in the first degree is a Class B felony. (Act 2012-429, p. 1170, §2.)
Section 27-12A-4 Insurance fraud in the second degree. (a) An act prohibited by Section 27-12A-2, in cases where the loss or potential loss does not exceed one thousand dollars ($1,000), constitutes insurance fraud in the second degree. (b) Insurance fraud in the second degree is a Class C felony. (Act 2012-429, p. 1170, §2.)
Section 27-12A-5 Transacting insurance without a license. (a) A person commits the crime of transacting insurance without a license if he or she knowingly transacts the business of insurance in violation of laws requiring a license, certificate of authority, or other legal authority for the transaction of the business of insurance. (b) Transacting insurance without […]
Section 27-12A-6 General. (a) No prosecution may be commenced under this article more than two years after the alleged violation was detected. (b) An individual who has been convicted of insurance fraud in the first degree or insurance fraud in the second degree shall be disqualified from engaging in the business of insurance in this […]
Section 27-12A-7 Enforcement. (a) The enforcement of this chapter shall be vested in the Department of Insurance. It shall be the duty of the department to see that the provisions of this chapter are at all times obeyed and to take such measures and to make such investigations as will prevent or detect the violation […]
Section 27-12A-8 Licensing penalties for insurance fraud. (a) A producer who violates this chapter may be subject to the suspension or revocation of any insurance license held by the producer or civil penalties of up to five thousand dollars ($5,000) per violation, or both. Suspension or revocation of an insurance license or certificate of authority […]
Section 27-12A-9 Administrative cease and desist authority. Whenever it appears to the commissioner that any person has engaged in or is about to engage in any act or practice constituting a violation of any provision of this chapter or any rule or order hereunder, the commissioner may, in the commissioner’s discretion, do either or both […]
