BILL NUMBER: AB 1979	CHAPTERED  09/18/00

	CHAPTER   470
	FILED WITH SECRETARY OF STATE   SEPTEMBER 18, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 16, 2000
	PASSED THE ASSEMBLY   AUGUST 30, 2000
	PASSED THE SENATE   JULY 6, 2000
	AMENDED IN SENATE   JUNE 21, 2000
	AMENDED IN SENATE   JUNE 8, 2000
	AMENDED IN ASSEMBLY   APRIL 24, 2000

INTRODUCED BY   Assembly Member Wesson

                        FEBRUARY 18, 2000

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1979, Wesson.  Insurance:  false and fraudulent claims.
   Existing law requires an insurer, who in connection with any
insurance contract providing liability insurance, provides a form for
the purpose of making a claim against the insurer, to include a
statement indicating that it is a crime to knowingly make false or
fraudulent claims for the payment of a loss.
   This bill would exclude a contract of reinsurance from the above
requirement.


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) Any insurer who, in connection with any insurance
contract or provision of contract described in Section 108, prints,
reproduces, or furnishes a form to any person upon which that person
gives notice to the insurer or makes claim against it by reason of
accident, injury, death, or other noticed or claimed loss, or on a
rider attached thereto, shall cause to be printed or displayed in
comparative prominence with other content the statement:  "Any person
who knowingly presents false or fraudulent 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.