California Insurance Code

§ 1871

INS § 1871 Effective Jan 1, 2003Div. 1 · Part 2 · Ch. 12 · Art. 1

Statute text

The Legislature finds and declares as follows:

(a)The business of insurance involves many transactions that have the potential for abuse and illegal activities. There are numerous law enforcement agencies on the state and local levels charged with the responsibility for investigating and prosecuting fraudulent activity. This chapter is intended to permit the full utilization of the expertise of the commissioner and the department so that they may more effectively investigate and discover insurance frauds, halt fraudulent activities, and assist and receive assistance from federal, state, local, and administrative law enforcement agencies in the prosecution of persons who are parties in insurance frauds.

(b)Insurance fraud is a particular problem for automobile policyholders; fraudulent activities account for 15 to 20 percent of all auto insurance payments. Automobile insurance fraud is the biggest and fastest growing segment of insurance fraud and contributes substantially to the high cost of automobile insurance with particular significance in urban areas.

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Legislative history

Amended by Stats. 2002, Ch. 6, Sec. 2.5. Effective January 1, 2003.