Historically, which of the following was a reason for why only a few states had fraud departments?

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The main idea is that creating formal fraud investigation units depends on having the technology and resources to detect and pursue fraud. In the earlier history of insurance, rapid advancements in technology gradually provided the tools (computers, data systems, analytics) that made fraud detection feasible and worthwhile. Before those technologies were widespread, many states simply didn’t have the capability or the justification to staff dedicated fraud departments. As technology advanced, only a few states invested quickly enough to establish and sustain such units, while others lagged behind. So the pace of technological progress explains why only a limited number of states had fraud departments early on. Budget constraints and the presence or absence of specific laws can influence adoption, but they don’t sit at the core of why the spread was initially so limited—the opportunity to effectively detect and investigate fraud hinged on having the right tech, which was available to only a subset of states at the time.