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

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-Enrolled.html

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Enrolled  September 08, 2023

Passed  IN  Senate  September 06, 2023

Passed  IN  Assembly  September 05, 2023

Amended  IN  Assembly  August 28, 2023

Amended  IN  Assembly  June 19, 2023

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, 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.

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 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.