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AB-2264 Insurance fraud: release of information: other unlawful activity.(2011-2012)

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AB2264:v98#DOCUMENT

Corrected  May 01, 2012
Amended  IN  Assembly  April 26, 2012

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 2264


Introduced  by  Assembly Member Knight
(Principal Coauthor(s): Senator Runner)

February 24, 2012


An act to amend Section Sections 1872.5 and 1873 of the Insurance Code, relating to insurance information.


LEGISLATIVE COUNSEL'S DIGEST


AB 2264, as amended, Knight. Insurance fraud: release of information: other unlawful activity.
Existing law requires an insurer, or agent authorized by that insurer to act on behalf of the insurer, upon written request, to release to a requesting officer of an authorized governmental agency, as defined, any or all relevant information deemed important to the authorized governmental agency that the insurer may possess relating to any specific insurance fraud. Existing law provides that no insurer may be subject to civil liability by virtue of providing information pursuant to these provisions.
This bill would also require the insurer, or agent authorized by that insurer to act on behalf of the insurer, to release to the authorized governmental agency any or all relevant information deemed important to the authorized governmental agency that the insurer may possess relating to any other unlawful activity by the insured or claimant uncovered in the course of an insurance fraud investigation, including, but not limited to, information about an illegal unlawful activity by the insured or claimant not related to insurance fraud. The bill would provide that no insurer, or agent authorized by that insurer, would be subject to civil liability by virtue of providing information about an unlawful activity not related to insurance fraud that is uncovered when investigating an allegation of insurance fraud.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1872.5 of the Insurance Code is amended to read:

1872.5.
 No insurer, or the employees or agents of any insurer, shall be subject to civil liability for libel, slander, invasion of privacy, or any other relevant tort cause of action by virtue of providing any of the following without malice:
(a) Any information or reports relating to suspected fraudulent insurance transaction furnished to law enforcement officials, or licensing officials governed by the Business and Professions Code.
(b) Any reports or information relating to suspected fraudulent insurance transaction furnished to other persons subject to this chapter.
(c) Any information or reports required by this article or required by the commissioner under the authority granted in this chapter.
(d) Any information about an unlawful activity not related to insurance fraud that is uncovered when investigating an allegation of insurance fraud pursuant to Section 1873.

SECTION 1.SEC. 2.

 Section 1873 of the Insurance Code is amended to read:

1873.
 (a) Upon written request to an insurer by officers designated in subdivisions (a) and (b) of Section 830.1 and subdivision (a) of Section 830.2, and subdivisions (a), (c), and (i) of Section 830.3 of the Penal Code, an insurer, or agent authorized by that insurer to act on behalf of the insurer, shall release to the requesting authorized governmental agency any or all relevant information deemed important to the authorized governmental agency that the insurer may possess relating to any specific insurance fraud or any other unlawful activity by the insured or claimant uncovered in the course of an insurance fraud investigation. Relevant information may include, but is not limited to, all of the following:
(1) Insurance policy information relevant to the insurance fraud under investigation, including, but not limited to, any application for a policy.
(2) Policy premium payment records that are available.
(3) History of previous claims made by the insured.
(4) Information relating to the investigation of the insurance fraud, including statements of any person, proof of loss, and notice of loss.
(5) Complete copies of both sides of payment drafts.
(6) Information about an illegal unlawful activity by the insured or claimant not related to insurance fraud that is uncovered when investigating an allegation of insurance fraud.
(b) The provisions of subdivision (a) shall not operate to authorize disclosure of medical information not otherwise authorized for disclosure pursuant to law.

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