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Insurance Commissioner Jones Announces $32 Million in Grants to Local Law Enforcement to Fight Workers' Compensation Insurance Fraud

News: 2012 Press Release

For Release: June 21, 2012
Media Calls Only: 916-492-3566
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Insurance Commissioner Jones Announces $32 Million in Grants to Local Law Enforcement to Fight Workers' Compensation Insurance Fraud
Funds to Aid District Attorneys in Investigation, Prosecution

Insurance Commissioner Dave Jones today announced that nearly $32 million in grants will be distributed to District Attorneys in California by the California Department of Insurance (CDI) in order to support their efforts in investigating and prosecuting workers' compensation insurance fraud.

"Without question, workers' compensation insurance fraud is problem that brings a significant cost with it in California," Commissioner Jones said. "During any time, but especially during these challenging economic times, this type of fraud places a significant added burden on the system. We have an obligation to provide protection to injured workers who require both care and compensation so they are able to get back to work as quickly as possible, while also rooting out fraud perpetrated by those seeking to game the system."

Every year, the Fraud Assessment Commission determines the grant funding based on assessments placed on California employers. CDI leads the Workers' Compensation Grant Review Panel that reviews and makes grant funding recommendations based on multiple criteria including previous year performance based on application submitted by counties. Subsequently, the panel then sends a recommendation to the Insurance Commissioner who either accepts or amends the panel's recommendation. Upon completion, the Commissioner's recommendation is submitted to the Fraud Assessment Commission for their advice and consent.

The Fraud Assessment Commission agreed with the Commissioner's recommendations in their meeting on June 20, ratifying the grant allocations. Below is a list of funding to the counties:

Insurance Commissioner's Funding Recommendation
2012-2013 Potential Spending Authority

Alameda $1,425,916
Amador $413,186
Butte $108,600
Contra Costa $603,400
El Dorado $257,247
Fresno $1,122,000
Humboldt $178,400
Imperial $143,087
Kern $715,000
Kings $269,791
Lake $44,698
Los Angeles $5,937,916
Marin $233,731
Merced $94,012
Monterey $600,000
Napa $130,153
Orange $3,588,116
Plumas $0
Riverside $1,488,786
Sacramento $884,657
San Bernardino $2,206,339
San Diego $4,527,303
San Francisco $702,366
San Joaquin $478,031
San Luis Obispo $62,254
San Mateo $660,318
Santa Barbara $286,000
Santa Clara $2,452,358
Santa Cruz $149,332
Shasta $166,000
Siskiyou $33,007
Solano $173,388
Sonoma $74,419
Tehama $83,528
Tulare $504,393
Ventura $729,984
Yolo $246,676
TOTAL $31,774,392

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 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.

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