Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 66 - TRADE PRACTICES (§§ 23-66-201 — 23-66-702) › Subchapter 5 - FRAUDULUENT INSURANCE ACTS PREVENTION (§§ 23-66-501 — 23-66-513) › Section 23-66-508 - Creation and purpose of Criminal Investigation Division

(a)
(1)
The Criminal Investigation Division is established within the State Insurance Department and is designated a law enforcement agency.
(2)
(A)
The Insurance Commissioner shall appoint the full-time supervisory and investigative personnel of the division, who shall be qualified by training and experience to perform the duties of their positions.
(B)
A person designated and employed as an investigator for the division shall:
(i)
Be a certified law enforcement officer under §
12-9-101
et seq.; and
(ii)
Have statewide law enforcement jurisdiction and authority.
(3)
(A)
The commissioner shall designate the personnel assigned to the division who shall conduct investigations under §
23-66-504
and any criminal violations related to those investigations.
(B)
Personnel hired as law enforcement officers shall be state-certified in law enforcement or have equivalent national or military law enforcement experience as approved by the Arkansas Commission on Law Enforcement Standards and Training.
(4)
The commissioner shall also appoint clerical and other staff necessary for the division to carry out its duties and responsibilities under this subchapter.
(b)
It shall be the duty of the division to:
(1)
Initiate independent inquiries and conduct independent investigations when the division has cause to believe that a fraudulent insurance act may be, is being, or has been committed;
(2)
Review reports or complaints of alleged fraudulent insurance activities from federal, state, and local law enforcement and regulatory agencies, persons engaged in the business of insurance, and the public to determine whether the reports require further investigation and to conduct these investigations; and
(3)
Conduct independent examinations of alleged fraudulent insurance acts and undertake independent studies to determine the extent of fraudulent insurance acts.
(c)
The division shall have the authority to:
(1)
(A)
Issue subpoenas to examine any individual under oath and to compel the production of records, books, papers, contracts, and other documents.
(B)
Subpoenas shall be served in the same manner as if issued by a circuit court.
(C)
If any individual fails to obey a subpoena issued and served pursuant to this subsection, upon application of the division, the Pulaski County Circuit Court or the circuit court of the county where the subpoena was served may issue an order requiring the individual to comply with the subpoena.
(D)
Any failure to obey the order of the court may be punished by the court as contempt thereof;
(2)
Administer oaths and affirmations;
(3)
Share records and evidence with federal, state, or local law enforcement or regulatory agencies;
(4)
(A)
Make criminal referrals to prosecuting authorities.
(B)
The prosecuting attorney of the judicial district where a criminal referral has been made shall have, for the purpose of assisting in the prosecution, the authority to appoint as special deputy prosecuting attorneys licensed attorneys in the employment of the division.
(C)
The prosecuting attorney shall have the right and discretion to proceed against any person or organization on criminal referrals made hereunder, both organizational and individual liability being intended; and
(5)
(A)
Conduct investigations outside of this state.
(B)
If the information the division seeks to obtain is located outside this state, the person from whom the information is sought may make the information available to the division to examine at the place where the information is located.
(C)
The division may designate representatives, including officials of the state where the matter is located, to inspect the information on behalf of the division, and the division may respond to similar requests from officials of other states.
Amended by Act 2015, No. 1164,§ 2, eff. 7/22/2015.
Amended by Act 2013, No. 984,§ 2, eff. 8/16/2013.
Acts 1997, No. 217, § 1; 2001, No. 743, § 2; 2005, No. 1697, § 16.