California Insurance Commissioner Dave Jones today announced $3.2 million in grants to California District Attorneys aimed at combating fraudulent disability and health claims against insurance carriers and to protect consumers from various crimes related to the sale of life insurance and annuities. These funds are aimed at assisting them with the investigation and prosecution of insurance fraud.
“With the rise of insurance related fraud in California, local District Attorneys often have fewer resources at their disposal to fight fraud,” said Commissioner Dave Jones. “These funds will assist District Attorney’s across the state in the on going fight to combat these types of fraud perpetrated against consumers.”
The Disability & Health program enables the investigation and prosecution of losses as a result of health insurance fraud. The funding for this grant is generated from a 10 cent fee assessed for each insured under an individual or group insurance policy issued in the state.
The Life and Annuity Consumer Protection Program (LACPP) enables the investigation and prosecution of various crimes including the prosecution of licensed agents for theft, financial elder abuse, forgery and identity theft in their transaction of life insurance and annuities with California consumers. These grant funds are dedicated to protecting consumers who purchase life insurance and annuity products. The LACPP program was extended by the Legislature through the passage of AB 76 (Chapter 75, Statutes of 2009) and also permits the use of grant funds to provide educational outreach programs to senior citizens, who are often the targets of life and annuity related financial abuse.
Source: California Department of Insurance.
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