California · Insurance Code

INS §1872.86: (a) An insurer doing business in this state shall pay an annual special purpose assessment to be determined by the commissioner, not to exceed five thousand one hundred dollars ($5,100), to be used ex

Civil

What this law says, in plain English

Insurers must pay an annual assessment (up to $5,100) to fund the Fraud Division. The Division must publish annual reports on fraud investigations, prosecutions, and convictions.

Read the full statutory text

(a) An insurer doing business in this state shall pay an annual special purpose assessment to be determined by the commissioner, not to exceed five thousand one hundred dollars ($5,100), to be used exclusively for the support of the Fraud Division. All moneys received by the commissioner from insurers pursuant to this section shall be transmitted to the Treasurer to be deposited in the State Treasury to the credit of the Insurance Fund. (b) The Fraud Division shall report annually, on the department’s Internet Web site, all of the following information: (1) The number of suspected fraudulent claim referrals made to the Fraud Division pursuant to Section 1872.4, by line of insurance. (2) The number of investigations opened by the Fraud Division, by line of insurance, at the local, state, and federal levels. (3) The number of investigations referred by the Fraud Division for criminal prosecution, by line of insurance, at the local, state, and federal levels. (4) The number of insurer fraud cases investigated by the department’s Enforcement Branch. (5) The number of criminal complaints filed by prosecutors at the local, state, and federal levels. (6) The number of convictions at the local, state, and federal levels. (7) The total amount of court-ordered restitution, and the amount collected by the courts for the victims. (8) The number of training presentations focusing on the current schemes and trends, investigative tools and techniques, and proper reporting requirements needed to increase the quality of suspected fraudulent referrals by insurance industry special investigation units. (9) The number of vacant peace officer positions, including information on the number and rate of vacancies for which an employment commitment has been made and on the number and rate of vacancies required to meet budgeted salary savings requirements.

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