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AB-1672 Insurance: fraud.(2017-2018)

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Date Published: 02/18/2017 04:00 AM
AB1672:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 1672


Introduced by Assembly Member Limón

February 17, 2017


An act to amend Section 1877.4 of the Insurance Code, relating to insurance fraud.


LEGISLATIVE COUNSEL'S DIGEST


AB 1672, as introduced, Limón. Insurance: fraud.
Under existing law, certain governmental agencies are authorized to request that an insurer or other specified person release to the agency any relevant information deemed important relating to a workers’ compensation fraud investigation. Existing law also authorizes insurers to notify any of those governmental agencies of suspected fraud. Those governmental agencies are precluded from releasing this information to any person not authorized to receive the information, and a violation of this prohibition is a crime.
This bill would make technical, nonsubstantive changes to those provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 1877.4 of the Insurance Code is amended to read:

1877.4.
 (a) Any information acquired pursuant to this article shall not be a part of the public record. Except as otherwise provided by law, any authorized governmental agency, an insurer, or an agent authorized to act on its behalf, which behalf that receives any information furnished pursuant to this article shall not release that information to any person not authorized to receive the information under this article. Any person who violates the prohibition of this subdivision is guilty of a misdemeanor.
(b) The evidence or information described in this section shall be privileged and shall not be subject to subpoena or subpoena duces tecum in a civil or criminal proceeding, unless, after reasonable notice to any insurer, an agent authorized by an insurer to act on its behalf, licensed rating organization, or authorized governmental agency which that has an interest in the information, and a hearing, the court determines that the public interest and any ongoing investigation by the authorized governmental agency, insurer, or an agent authorized by the insurer to act on its behalf, or licensed rating organization will not be jeopardized by its disclosure, or by the issuance of of, and compliance with with, a subpoena or subpoena duces tecum.