California — Agents & Brokers & Fraud

California insurance companies are required to report insurance fraud to the department of insurance within 60 days of the conclusion of an investigation if they’re “reasonably” sure fraud is being committed.

That’s current law. If passed, Senate Bill 1242 will change all that and will force an insurer tell the office of the insurance commissioner that it “reasonably suspects or knows an act of insurance fraud occurred or might be occurring.”

That’s a big change.

Another big change, agents and brokers will be required to do the same. The bill says agents and brokers suspecting or knowing a fraud application is happening will have to report such conclusions to the insurer and to the Department of Insurance within 60 days.

Not only will agents and brokers be required — by law — to participate and cooperate with authorities in such cases, but they will be required to do at least one hour of continuing education in order to renew or receive an insurance license.

At the present time, S.B. 1242 has been given to the Assembly Insurance Committee. No action has been taken yet.

Source link: Business Insurance — https://bit.ly/3Ot8dcx