California Insurance Commissioner John Garamendi has announced a new Special Investigative Unit (SIU) regulations for insurance carriers licensed to conduct business in California. The new regulations are a result of a collaborative effort with the Department of Insurance, members of the insurance industry and other key stakeholders. Insurance company SIU’s review and refer incidences of suspected insurance fraud to the Department’s Fraud Division, which receives approximately 24,000 suspected referrals each year.
“I applaud the hard work and combined efforts between CDI, the insurance industry and stakeholders to form these new regulations,” said Insurance Commissioner John Garamendi. “The new more stringent guidelines will be a huge advantage in our efforts to stop insurance fraud.”
The new regulations include revised definitions, continuous SIU operation requirements, additional training procedures, stricter communication requirements, and clarification of when to refer suspected insurance fraud. Additionally, these regulations include language that implements penalty statutes contained in California Insurance Code sections 1875.24, which became effective earlier this year.
The full text of the new regulations, effective as of October 7, 2005, can be found on the CDI website. These regulations, Title 10, California Code of Regulations, Chapter 5, subchapter 9, article 2, sections 2698.30 to 2698.43, implement California Insurance Code sections 1875.20-24.
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