Insurance Commissioner Jones Announces $3.2 Million In Grant Funding to Combat Life, Annuity and Disability Insurance Fraud
News: 2011 Press Release
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 |
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
