NU Online News Service, June 18, 3:33 p.m. EDT
California Insurance Commissioner Steve Poizner announced nearly $30 million in grants today to district attorneys in 37 counties for aid in combating workers' compensation fraud.
Mr. Poizner's announcement said the amount was an increase of almost $1 million over last year.
"In this struggling economy, it is more important than ever to make it easy for businesses to stay and expand in the state. Because fraud drives up the costs of workers' compensation insurance, we must continue to be vigilant in our battle with those who dishonestly and illegally take advantage of the system," said Mr. Poizner.
According to the commissioner, insurance fraud amounts to "a $500 hidden tax on every man, woman and child in California. I am happy to be able to provide this funding to our local law enforcement partners so we can work together to fight this fraud."
Funding for the grants is the result of an assessment on employers as determined by the Fraud Assessment Commission. Counties apply annually for these grants. The applications are reviewed by the Workers' Compensation Grant Review Panel based on a number of criteria, including the previous year's performance.
The panel makes a recommendation to the insurance commissioner who can accept or amend the panel's recommendation and the Insurance Commissioner's final decision must be ratified by the Fraud Assessment Commission.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.