Bill Text: CA AB3180 | 2017-2018 | Regular Session | Introduced

California Assembly Bill 3180 (Prior Session Legislation)

Introduced

Bill Title: Insurance: misrepresentations.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-04-18 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB3180 Detail]

Download: California-2017-AB3180-Introduced.html

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill

No. 3180

Introduced by Assembly Member Frazier

February 16, 2018

An act to amend Section 782 of the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL'S DIGEST

AB 3180, as introduced, Frazier. Insurance: misrepresentations.

Existing law prohibits an insurer or his or her agent from issuing, circulating, or using a statement that is known, or should have been known, to be a misrepresentation of, among other things, the terms of a policy issued by the insurer or sought to be negotiated by the person making or permitting the misrepresentation. Existing law also prohibits a person from, among other things, making a statement that is known, or should have been known, to be a misrepresentation to another person for the purpose of inducing that other person to take out a policy of insurance or to induce that other person to lapse, forfeit, or surrender his or her insurance.

Existing law provides that a violation of these provisions is punishable by a fine of up to $25,000 or if the loss of the victim exceeds $10,000, by a fine of up to 3 times that loss, by imprisonment in a county jail for a period of up to one year, or by both that fine and imprisonment.

This bill would increase the $25,000 fine limit to $30,000.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 782 of the Insurance Code is amended to read:

782.

~~Any~~ A person who violates ~~the provisions of~~ Section 780 or 781 is punishable by a fine not exceeding ~~twenty-five~~ thirty thousand dollars ~~($25,000),~~ ($30,000) or in a case in which the loss of the victim exceeds ten thousand dollars ($10,000), by a fine not exceeding three times the amount of the loss suffered by the victim, by imprisonment in a county jail for a period not to exceed one year, or by both a fine and imprisonment. Restitution to the victim ordered pursuant to Section 1202.4 of the Penal Code shall be satisfied before any fine imposed by this section is collected.