Bill Text: CA SB743 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Insurance: false and fraudulent claims.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2023-09-22 - Chaptered by Secretary of State. Chapter 217, Statutes of 2023. [SB743 Detail]

Download: California-2023-SB743-Amended.html

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Amended  IN  Senate  April 10, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 743

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Introduced by Senator Nguyen

February 17, 2023

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

LEGISLATIVE COUNSEL'S DIGEST

SB 743, as amended, 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 would, for purposes of that provision, as it pertains to a life insurance policy, define the specific instances that would constitute seeking to make a change to an existing policy, including an attempt to surrender a policy.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

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 make a change to 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) For the purposes of subdivision (a), as it pertains to a life insurance policy, the phrase “seeks to make a change to an existing policy” shall be defined as any attempt to change an owner or beneficiary of a policy, procure a loan against a policy, make a cash withdrawal from a policy, or surrender a policy.

(c) This section is not applicable to a contract of reinsurance as defined in Section 620.