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
Life and Annuity Consumer Protection Program
FY 11/12 Grant Awards
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $371 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.