The California Assembly passed a bill this week that will increase the ability of its Department of Insurance to fight insurance fraud.

The bill, HYPERLINK “” AB 1401 , which was brought by Assemblyman Greg Aghazarian , substantially increases the mandatory assessment amounts for insurers who write policies in the state, from $1,300 to $5,100. According to a release from the California Department of Insurance (CDOI), who sponsored the bill, the 300 percent increase is due to the fact that assessment rates have not been raised since 1973, except for a small increase of $300 in 2000. The additional money obtained from the required assessments will go towards hiring 22 vacant investigator positions that previously were unfilled because of budget constraints, the CDOI said.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including and

Already have an account?



Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join now!

  • Unlimited access to - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including, and
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2022 ALM Global, LLC. All Rights Reserved.