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News: 2011 Press Release

For Release: August 4, 2011
Media Calls Only: 916-492-3566
Insurance Commissioner Jones Announces $3.2 Million In Grant Funding to Combat Life, Annuity and Disability Insurance Fraud
Funds will assist District Attorneys in investigation, prosecution

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 Attorneys across the state in the ongoing 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.

The breakdown to individual counties is as follows:

Disability and Healthcare Program 

FY 11/12 Grant Awards

County Amount
Alameda $111,755
Los Angeles $611,500
Orange $586,500
San Diego $212,245
Santa Clara $190,000
Total $1,712,000

Life and Annuity Consumer Protection Program 

FY 11/12 Grant Awards 

County Amount
Alameda $125,000
Fresno $165,000
Los Angeles $215,000
Marin $50,000
Monterey $75,000
Orange $300,000
San Diego $264,000
San Mateo $85,000
Santa Barbara $50,000
Santa Clara $100,000
Siskiyou $24,000
Yolo $47,000
Total $1,500,000

The California Department of Insurance, established in 1868, is the largest consumer protection agency in California, regulating the $123 billion insurance marketplace. In 2013 the California Department of Insurance received more than 170,000 calls from consumers and helped recover over $63 million in claims and premiums. Please visit the Department of Insurance web site at Non-media inquiries should be directed to the Consumer Hotline at 800.927.HELP or 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.