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Cal. Ins. Code § 1872.81

Bureau of Fraudulent Claims

Redline — January 1, 2011 → current.View current text →
Current — January 1, 2015
As of January 1, 2011
In addition to the special purpose assessment imposed pursuant to Section 1872.8, effective July 1, 2014, an insurer doing business in this state shall, until January 1, 2016, pay to the commissioner an annual special purpose assessment of twenty-six cents ($0.26), and thereafter pay to the commissioner an annual special purpose assessment in an amount not to exceed twenty-six cents ($0.26), as determined by the commissioner, for each vehicle insured under an insurance policy it issues in this state, for expenditure, upon appropriation by the Legislature, as follows:
(a) Two-thirds of the special purpose assessment shall be used for the purpose of funding the consumer service functions of the department that are related to regulating automobile insurers, including those functions performed by the rating and underwriting service bureau, the claims service bureau, the investigations bureau, or any successor bureaus of the department that may assume the consumer service functions of these bureaus, and legal services in support of these bureaus.
(b) One-third of the special purpose assessment shall be used for the purpose of improving consumer functions identified in subdivision (a) of the department that are related to regulating automobile insurers, including, for improving the ability of the department to respond to consumer complaints and information requests through the department’s toll-free telephone number, and for improving the ability of the department to offer information about automobile insurance rates to the public.
(a) In addition to the special purpose assessment imposed pursuant to Section 1872.8, an insurer doing business in this state shall pay to the commissioner an annual special purpose assessment of thirty cents ($0.30) for each vehicle insured under an insurance policy it issues in this state, for expenditure as follows: (1) An amount equivalent to twenty cents ($0.20) of the special purpose assessment imposed per insured vehicle by this subdivision shall be used for the purpose of paying for consumer service functions of the department that are related to automobile insurance. The revenues under this paragraph shall be used to improve service to consumers through the rating and underwriting services bureau, the claims services bureau, the investigations bureau, or any successor bureaus of the department that may assume the consumer service functions of these bureaus, and legal services in support of these bureaus. The department shall develop a plan for the use of the revenues available under this paragraph for the purposes authorized, and shall submit the plan to the Assembly and Senate Committees on Insurance. (2) An amount equivalent to ten cents ($0.10) of the special purpose assessment imposed per insured vehicle by this subdivision shall be used for the purpose of improving consumer functions of the department related to automobile insurance. Revenues available under this paragraph shall be used to improve consumer functions through one or more of the following: (A) The rating and underwriting services bureau. (B) The claims services bureau. (C) The investigations bureau. (D) Any successor bureau of the department that may assume automobile insurance consumer functions of these bureaus, and legal services in support of these bureaus. These revenues also may be used for improving the ability of the department to respond to consumer complaints and information requests through the department’s toll-free telephone number, and for improving the ability of the department to offer information about automobile insurance rates to the public. The department shall develop a plan for the use of the revenues available under this paragraph for the purpose authorized, and shall submit the plan to the Assembly and Senate Committees on Insurance. (3) Notwithstanding paragraph (2), the Department of Insurance, after January 1, 2006, and the Department of Motor Vehicles, after that date, may propose to the budget committees of the Legislature a proposed use of up to five cents ($0.05) of the ten-cent ($0.10) special purpose assessment levied pursuant to paragraph (2) related to informing consumers about the existence of any low-cost automobile insurance program authorized in law pursuant to Section 11629.7 or other statutes that also establish a program of the type identified in Section 11629.7. Funds for this purpose shall not be expended without prior budget approval. The total amount of funds authorized to both departments in total, or to one department in total, for this purpose shall not exceed five cents ($0.05). The departments shall explain, with as much specificity as is reasonably possible, the objectives for the use of the funds and quantitative criteria by which the Legislature may evaluate the effectiveness of the department’s use of funds.
(c) Upon appropriation by the Legislature, the department may use up to five cents ($0.05) of the special purpose assessment revenues collected pursuant to this section to notify insurers and other members of the public about the existence of any low-cost automobile insurance program established pursuant to Section 11629.7 or other statutes that establish a program of the type identified in Section 11629.7. In requesting an appropriation for this purpose under its proposed plan developed pursuant to Section 11629.85, the department shall explain, with as much specificity as is reasonably possible, the objectives for the use of the funds and the quantitative criteria by which the Legislature may evaluate the effectiveness of the department’s use of the funds.
(b) This section shall remain in effect only until January 1, 2015, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2015, deletes or extends that date.
(d) The commissioner shall include, in the annual report submitted pursuant to Section 12922, all of the following information:
(1) The number of opened consumer complaints related to automobile insurance.
(2) The number of opened investigations related to automobile insurance.
(3) The number of investigations related to automobile insurance referred to prosecuting agencies.
(4) The number of administrative or regulatory cases related to automobile insurance referred to the department’s legal division.
(5) The number of administrative or regulatory enforcement actions taken in cases related to automobile insurance.
(6) Total aggregate annual assessment revenue and expenditures pursuant to the assessment.

Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.