CDI News

13 Indictments Handed Down in Massive Workers’ Comp Fraud Scam

An investigation into what’s being called one of the largest cases of workers’ compensation health care insurance fraud in California Department of Insurance history led to 13 indictments announced today against seven Southern California-based medical professionals. This is the second …

California Insurance Commissioner Calls for Insurance Divestment from Coal

California Insurance Commissioner Dave Jones on Monday asked all insurance companies doing business in California to voluntarily divest from their investments in thermal coal as part of a nationwide call to reduce carbon emissions to do battle with climate change. …

Geico Agrees To $6M Settlement over Business Practices in California

Geico has agreed to pay $6 million dollars and implement several changes to their business practices as part of a settlement with the California Department of Insurance, CDI announced on Monday. The settlement stems from a petition in which Consumer Federation …

California Agent Nabbed on Bogus Bond, $100K Premium Theft Charges

Licensed insurance agent Lars Hedegaard, 63, of Danville, Calif. was arrested on two felony counts of grand theft. Hedegaard was doing business as Westport &Associates Insurance Services Inc. when he allegedly issued 14 fraudulent bonds to contractors and collected $111,365 …

California Auto Insurance Fraud Sweep Nets Nearly 200

Detectives from the California Department of Insurance assisted by local district attorneys and local law enforcement spent the last week serving arrest warrants in 22 counties where more than 200 felony counts and multiple misdemeanor charges were filed against 195 …

Small Workers’ Comp Carrier Exits California

Public Service Mutual Insurance Co.’s exit from California’s workers’ compensation market isn’t a reflection of the health of the state’s workers’ comp system, according to the California Department of Insurance. The workers’ comp carrier is part of the Magna Carta …

Website Has Investment Policies of California’s Largest Insurers

The community investment policies of the state’s top 206 insurance companies are now available on the California Department of Insurance website. “By knowing what types of investments California insurers plan to make, as well as their decision process on making …

Safeco in California to Pay Out $3M For Using Credit Scores

Safeco Insurance Co. has agreed to pay a $900,000 fine and reform its approval process for homeowners and auto insurance coverage, California Insurance Commissioner Dave Jones announced Friday. Safeco was fined for the unapproved use of credit scores to deny …

California Department of Insurance Settles with Zurich over Workers’ Comp

The California Department of Insurance announced a settlement with Zurich American Insurance Co. and Zurich American Insurance Co. of Illinois over what CDI alleged was improper use of workers’ compensation insurance agreements. Zurich’s agreements forced California employers to arbitrate commercial …

‘Key Figure’ in Organized Auto Insurance Fraud Ring Nabbed

Teddy Marks, 41, of Morgan Hill, Calif., who the California Department of Insurance is calling a “key figure” in an organized auto insurance fraud ring, has been arrested on two felony counts of insurance fraud and one felony count of …