BILL NUMBER: AB 802 AMENDED
AMENDED IN ASSEMBLY MAY 12, 2009
AMENDED IN ASSEMBLY APRIL 21, 2009
INTRODUCED BY Assembly Member Duvall
FEBRUARY 26, 2009
An act to amend
Sections 1873 and 1874.1
Section 1873 of the Insurance Code, relating to insurance
LEGISLATIVE COUNSEL'S DIGEST
AB 802, as amended, Duvall. Insurance fraud: release of
information: other unlawful activity.
Existing law requires an insurer, or agent authorized by that
insurer to act on behalf of the insurer, upon written request, to
release to a requesting officer of an authorized governmental agency,
as defined, any or all relevant information deemed important to the
authorized governmental agency that the insurer may possess relating
to any specific insurance fraud.
This bill would also require the insurer, or agent authorized by
that insurer to act on behalf of the insurer, to release to the
authorized governmental agency any or all relevant information deemed
important to the authorized governmental agency that the insurer may
possess relating to any other unlawful activity recovered
uncovered in the course of an insurance fraud
investigation. This bill would state that the Bureau of
Automotive Repair, the Medical Board of California, and the State Bar
of California are included as authorized governmental agencies, as
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1873 of the Insurance Code is amended to read:
1873. (a) Upon written request to an insurer by officers
designated in subdivisions (a) and (b) of Section 830.1 and
subdivision (a) of Section 830.2, and subdivisions (a), (c), and (i)
of Section 830.3 of the Penal Code, an insurer, or agent authorized
by that insurer to act on behalf of the insurer, shall release to the
requesting authorized governmental agency any or all relevant
information deemed important to the authorized governmental agency
that the insurer may possess relating to any specific insurance fraud
or any other unlawful activity recovered
uncovered in the course of an insurance fraud investigation.
Relevant information may include, but is not limited to, all of the
(1) Insurance policy information relevant to the insurance fraud
under investigation, including, but not limited to, any application
for a policy.
(2) Policy premium payment records that are available.
(3) History of previous claims made by the insured.
(4) Information relating to the investigation of the insurance
fraud, including statements of any person, proof of loss, and notice
(5) Complete copies of both sides of payment drafts.
(6) Information about an illegal activity not related to insurance
fraud that is uncovered when investigating an allegation of
(b) The provisions of subdivision (a) shall not operate to
authorize disclosure of medical information not otherwise authorized
for disclosure pursuant to law.
SEC. 2. Section 1874.1 of the Insurance Code is
amended to read:
1874.1. The following definitions govern the construction of this
article, unless the context requires otherwise:
(a) "Authorized governmental agency" means the Department of the
California Highway Patrol, the Department of Insurance, the
Department of Justice, the Department of Motor Vehicles, the police
department of a city, or a city and county, the sheriff's office or
department of a county, a law enforcement agency of the federal
government, the district attorney of any county, or city and county,
and any licensing agency governed by the Business and Professions
Code, including the Bureau of Automotive Repair, the Medical Board of
California, and the State Bar of California, or the Chiropractic
(b) "Relevant" means having a tendency to make the existence of
any fact that is of consequence to the investigation or determination
of an issue more probable or less probable than it would be without
(c) Information shall be deemed important if, within the sole
discretion of the authorized governmental agency, that information is
requested by that authorized governmental agency.
(d) "Insurer" means the automobile assigned risk plan established
pursuant to Section 11620 of the Insurance Code, as well as any
insurer writing insurance for motor vehicles or otherwise liable for
any loss due to motor vehicle theft or motor vehicle insurance fraud.
(e) "Motor vehicle" means motor vehicle as defined in Section 415
of the Vehicle Code.