California Senate Passes Insurance Fraud Bill

June 15, 2009

The California Senate has passed SB 156 to authorize the Department of Insurance or a district attorney to convene meetings with an insurance company to discuss a specific insurance fraud and would provide that any person sharing information pursuant to that authorization would be protected from civil liability.

The bill noted that existing law generally provides for the prevention, detection and investigation of insurance fraud, in which insurers are required to disclose information relative to incidents of workers’ compensation fraud.

The bill now moves to the Assembly.