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SB-743 Insurance: false and fraudulent claims.(2023-2024)



Current Version: 09/22/23 - Chaptered

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SB743:v94#DOCUMENT

Senate Bill No. 743
CHAPTER 217

An act to amend Section 1871.2 of the Insurance Code, relating to insurance.

[ Approved by Governor  September 22, 2023. Filed with Secretary of State  September 22, 2023. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 743, Nguyen. Insurance: false and fraudulent claims.
Existing law requires an insurer, in connection with an insurance application, contract, or provision, who prints, reproduces, or furnishes a form to any person that applies for a policy or seeks to make a change to an existing policy, among other specified actions, to include a prominent statement that it is a crime to knowingly present false and fraudulent information to obtain or amend insurance coverage.
This bill would require an insurer to provide the above statement regarding false and fraudulent information on a form upon which a person applies for a policy, seeks to amend insurance coverage, or furnishes information relating to underwriting criteria affecting premium or eligibility for coverage, under an existing policy, instead of when that person applies for a policy or seeks to make a change to an existing policy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 1871.2 of the Insurance Code is amended to read:

1871.2.
 (a) An insurer who, in connection with any insurance application, contract, or provision of contract, prints, reproduces, or furnishes a form to any person upon which that person applies for a policy, seeks to amend insurance coverage, or furnishes information relating to underwriting criteria affecting premium or eligibility for coverage, under an existing policy, or gives notice of a claim to the insurer or makes a claim against the insurer by reason of accident, injury, death, or other noticed or claimed loss, shall cause to be printed or displayed in comparative prominence with other content on the form, exclusive of schedules attached to the form, or an endorsement separate from the form, the statement: “Any person who knowingly presents false or fraudulent information to obtain or amend insurance coverage or to make a claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison.” This statement shall be preceded by the words: “For your protection California law requires the following to appear on this form” or other explanatory words of similar meaning.
(b) This section is not applicable to a contract of reinsurance as defined in Section 620.