SECTIONS 1879-1879.8

1879.  The purpose of this article is to confront aggressively theproblem of insurance fraud in this state by facilitating thedetection of insurance fraud, eliminating the occurrence of fraudthrough the development of fraud prevention programs, requiring therestitution of fraudulently obtained insurance benefits, and reducingthe amount of premium dollars used to pay fraudulent claims.1879.1.  The commissioner or his or her designated deputycommissioner may convene meetings with representatives of insurancecompanies to discuss specific information concerning suspected,anticipated, or completed acts of insurance fraud. Information sharedat those meetings regarding specific suspected, anticipated, orcompleted acts of insurance fraud shall not make a person subject tocivil liability for libel, slander, or any other relevant cause ofaction provided that all of the following requirements are met: (a) The commissioner or his or her designated deputy commissioneris present at the meeting or meetings. (b) The commissioner or his or her designated deputy commissioneradvises meeting participants, at the beginning of any meetingconvened pursuant to this section, of guidelines to ensure compliancewith federal and state antitrust laws. (c) There is no fraud or malice on the part of the representativesof the insurance companies or the commissioner or his or herdesignated deputy commissioner.1879.2.  (a) Any insurer that prints, reproduces, or furnishes aform to any person upon which that person gives notice to the insurerof a claim under any contract of insurance or makes a claim againstthe insurer for any loss, damage, liability, or other covered eventshall cause to be printed or displayed, in comparative prominencecompared to other contents, the following statement: "Any person whoknowingly presents a false or fraudulent claim for the payment of aloss is guilty of a crime and may be subject to fines and confinementin state prison." The statement shall be preceded by the words: "Foryour protection California law requires the following to appear onthis form" or other explanatory words of similar meaning. (b) Any insurer that has produced or caused to be printed formscontaining the statement required by subdivision (a), as originallyadded by Chapter 1008 of the Statutes of 1994, may continue to usethose forms until December 31, 1996. This subdivision is intended toprevent any unnecessary waste of resources that might result frominsurers' efforts to comply with conflicting provisions of law.1879.3.  The commissioner shall appoint supervisory andinvestigatory personnel within the bureau. In addition, thecommissioner shall assign staff counsel who are employed by thedepartment and are under the supervision of the department's generalcounsel to advise the department's fraud division, and to further thepurposes of this article and Article 1 (commencing with Section1871). The attorneys' duties may include representing thecommissioner and the department in civil lawsuits pursuant to Article1 (commencing with Section 1871). Those persons shall be qualifiedby training and experience to perform the duties of their position. When so requested by the commissioner, the Attorney General mayassign one or more deputy attorneys general to assist thecommissioner in the performance of these duties.1879.4.  (a) The Chief of the Fraud Division and those investigatorsdesignated by him or her may expend funds to conduct undercoveractivities, employ civilian operatives, or in any other manner notprohibited by law to investigate insurance fraud or workers'compensation fraud. (b) The money expended pursuant to subdivision (a) shall be paidout of the funds appropriated or made available by law for thesupport or use of the department.1879.5.  (a) Any person who believes that a violation of thisarticle has been or is being made may notify the departmentimmediately after discovery of the alleged violation and may send tothe department, on a form and in a manner prescribed by thecommissioner, the information requested and any additionalinformation relative to the alleged violation as the department mayrequest. The division shall review the reports and select thosealleged violations as may require further investigation. It shallthen cause an independent examination or evaluation of the factssurrounding the alleged violation to be made to determine the extent,if any, to which fraud, deceit, or intentional misrepresentation ofany kind exists. (b) No person shall be subject to civil liability for libel,violation of privacy, or otherwise by virtue of the filing of reportsor furnishing of other information, in good faith and withoutmalice, provided pursuant to this section or requested by thedepartment as a result of the authority conferred upon it by law. (c) The commissioner may, by regulation, require admitted insurersto keep any records and other information as he or she deemsnecessary for the effective enforcement of this article.1879.6.  The commissioner may adopt administrative regulations as heor she deems necessary for the effective implementation of thisarticle.1879.7.  The commissioner shall report annually to the Legislatureas to the activities of the department and the cost-effectiveness ofthe programs established pursuant to this article.1879.8.  Nothing in this article shall be construed to preclude theapplicability of any other provision of civil or criminal law thatapplies to any act committed or alleged to have been committed by anyperson.