BILL NUMBER: AB 736	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Charles Calderon

                        FEBRUARY 17, 2011

   An act to amend Section 1874.90 of the Insurance Code, relating to
insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 736, as introduced, Charles Calderon. Insurance: fraud
prevention.
   Existing law authorizes the Insurance Commissioner to declare any
region of the state as an auto insurance fraud crisis area upon
making a finding that auto insurance fraud is endemic to the area, as
specified.
   This bill would require the commissioner to provide a copy of the
declaration concerning a region's designation as a fraud crisis area
to the respective chairs of the Senate and Assembly standing
committees with primary jurisdiction over matters of public policy
involving insurance, as specified.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1874.90 of the Insurance Code is amended to
read:
   1874.90.   (a)    The commissioner may declare
any region of the state as an auto insurance fraud crisis area upon
making a finding that auto insurance fraud is endemic to the area.
That declaration of an auto insurance fraud crisis area shall be in
effect for not more than two years, unless extended or renewed by the
commissioner. Auto insurance fraud is endemic to an area if the
commissioner determines that organized automobile fraud activity
exists in the area and contributes significantly to the cost of
automobile insurance in that area. 
   (b) Notwithstanding Section 10231.5 of the Government Code, the
commissioner shall, at any time he or she issues a declaration
pursuant to subdivision (a), provide a copy of the declaration
concerning a region's designation as a fraud crisis area to the
respective chairs of the Senate and Assembly standing committees with
primary jurisdiction over matters of public policy involving
insurance. The declaration shall include a summary of the key
findings that support the determination the insurance fraud is
endemic to the area.