AB 686: Insurance: fraud prevention.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-03-26
Existing law prohibits knowingly employing runners, cappers, steerers, or other persons to procure clients or patients to perform or obtain services or benefits under workers compensation coverage, or to procure clients or patients to perform or obtain services or benefits under a contract of insurance or that will be the basis for a claim against an insured individual or his or her insurer. Existing law authorizes a district attorney, the Insurance Commissioner, or an interested person to bring a civil action for a violation of these prohibitions, as specified, and makes a person who commits a violation subject to a civil penalty of not less than $5,000 and not more than $10,000.
This bill would similarly prohibit a person from acting in the capacity of a runner, capper, or steerer, or to otherwise procure clients or patients to perform or obtain services or benefits under workers compensation coverage, or to procure clients or patients to perform or obtain services or benefits under a contract of insurance or that will be the basis for a claim against an insured individual or his or her insurer. The district attorney, the commissioner, or an interested person would be authorized to bring a civil action for a violation of these provisions.
The State Bar Act provides for the licensure and regulations of attorneys by the State Bar of California, a public corporation. The act prohibits persons who are not active members of the State Bar from practicing law in California, defined as including, among other things, advertising or holding himself or herself out as entitled to practice law or literally translating from English into another language, in any document, any words that imply that he or she is an attorney. The law makes a violation of this prohibition a misdemeanor.
This bill would expand that prohibition to include referring a person injured in the course of employment to a lawyer or law firm for professional services in connection with the injury. The bill would impose a civil penalty of up to $2,500 per day for each referral and require the State Bar to assess and collect the penalty in a civil action, as specified. By expanding the scope of a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
