Governor Arnold Schwarzenegger recently signed into law AB 2866, legislation that requires individuals and companies convicted of workers’ compensation insurance fraud to be posted on the Web, according to the Gilroy Dispatch. The California Department of Insurance is required to post the information, including the name of the individual or company, the punishment that was administered (including fines and length of jail time) and the amount of money defrauded in the scam. The legislation was sponsored by Assembly Majority Leader Dario Frommer (D-Glendale). Lawmakers hoped that the postings will serve as an added punishment to those convicted of fraud and as a deterrent for committing workers’ comp fraud. Industry experts estimate that workers’ comp fraud costs California as much as $3 billion a year.
Was this article valuable?
Here are more articles you may enjoy.
World’s Largest Retirement Community Taps Muni Market to Help Build More Homes 
GEICO Sues Medical Firms in Florida, NY Over Alleged No-Fault Auto Fraud 
Best Agency to Work For – Overall Winner: Robertson Ryan Insurance 
Catastrophe Bonds’ Huge Market Gains Put Reinsurers on Backfoot From This Issue
