Bill Text: CA SB156 | 2009-2010 | Regular Session | Chaptered
Bill Title: Insurance: fraud prevention and detection.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2010-09-27 - Chaptered by Secretary of State. Chapter 305, Statutes of 2010. [SB156 Detail]
Download: California-2009-SB156-Chaptered.html
BILL NUMBER: SB 156 CHAPTERED
BILL TEXT
CHAPTER 305
FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2010
APPROVED BY GOVERNOR SEPTEMBER 25, 2010
PASSED THE SENATE AUGUST 19, 2010
PASSED THE ASSEMBLY AUGUST 16, 2010
AMENDED IN ASSEMBLY AUGUST 9, 2010
AMENDED IN ASSEMBLY JUNE 30, 2009
AMENDED IN ASSEMBLY JUNE 16, 2009
AMENDED IN SENATE MAY 20, 2009
AMENDED IN SENATE APRIL 14, 2009
INTRODUCED BY Senator Wright
FEBRUARY 12, 2009
An act to add Section 1879.1 to the Insurance Code, relating to
insurance fraud.
LEGISLATIVE COUNSEL'S DIGEST
SB 156, Wright. Insurance: fraud prevention and detection.
Existing law generally provides for the prevention, detection, and
investigation of insurance fraud. Existing law requires insurers to
disclose to an authorized governmental agency information relative to
incidents of workers' compensation fraud, as specified.
This bill would authorize the Department of Insurance to convene
meetings with insurance companies to discuss specific information
concerning suspected, anticipated, or completed acts of insurance
fraud and would protect a person sharing information pursuant to that
authorization from civil liability for libel, slander, or any other
relevant cause of action, as specified.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature hereby finds and declares all of the
following:
(a) The California Department of Insurance regulates more than 123
billion dollars ($123,000,000,000) of insurance business annually.
Workers' compensation business accounted for 11.5 billion dollars
($11,500,000,000) of that business as of 2006.
(b) A report issued by the Department of Insurance Advisory Task
Force in May of 2008 estimated that insurance fraud of regulated
businesses amounts to costs of 15 billion dollars ($15,000,000,000)
per year, costing each resident an average of more than five hundred
dollars ($500) per year.
(c) Perpetrators often defraud more than one insurance program. An
effective antifraud effort requires greater cooperation,
coordination, and communication of impacted insurers, services, and
regulating agencies.
(d) It is the intent of the Legislature to enact statutory
provisions to provide law enforcement regulators and the regulated
community additional insurance antifraud tools and protections while
still ensuring compliance with federal and state antitrust laws.
SEC. 2. Section 1879.1 is added to the Insurance Code, to read:
1879.1. The commissioner or his or her designated deputy
commissioner may convene meetings with representatives of insurance
companies to discuss specific information concerning suspected,
anticipated, or completed acts of insurance fraud. Information shared
at those meetings regarding specific suspected, anticipated, or
completed acts of insurance fraud shall not make a person subject to
civil liability for libel, slander, or any other relevant cause of
action provided that all of the following requirements are met:
(a) The commissioner or his or her designated deputy commissioner
is present at the meeting or meetings.
(b) The commissioner or his or her designated deputy commissioner
advises meeting participants, at the beginning of any meeting
convened pursuant to this section, of guidelines to ensure compliance
with federal and state antitrust laws.
(c) There is no fraud or malice on the part of the representatives
of the insurance companies or the commissioner or his or her
designated deputy commissioner.
