New special investigative unit regulations have been implemented in California for insurance carriers licensed to conduct business.
The regulations, a result of a collaborative effort between the California Department of Insurance and members of the insurance industry, include revised definitions, continuous SIU operation requirements, additional training procedures, stricter communication requirements, and clarification of when to refer cases of suspected insurance fraud.
Additionally, language that implements penalty statutes, which were approved earlier this year, has been included. Insurers can be fined up to $55,000 and have their licenses suspended or revoked for each act that violates a regulation.
"We support California in their efforts in their fight against insurance fraud," stated Dan Fitzgerald, president of the International Association of Special Investigation Units. "The industry already does many of the things outlined in the new regulations in other venues, thus there are no difficulties perceived for companies or SIU investigators. Fraud is a major problem facing insurers and consumers, thus IASIU congratulates California on taking these measures."
California's DOI receives 24,000 suspected referrals each year.
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