You are here:HomeNews CenterInsurance News2009Insurers Decry California Plan to Downgrade Insurance Crimes

Insurers Decry California Plan to Downgrade Insurance Crimes

Four anti-fraud groups have written California Gov. Arnold Schwarzenegger (R), criticizing his budget proposal to downgrade most insurance crimes from felonies to misdemeanors. The governor...
July 1, 2009

Four anti-fraud groups have written California Gov. Arnold Schwarzenegger (R), criticizing his budget proposal to downgrade most insurance crimes from felonies to misdemeanors. The governor has advanced the idea as a method to save on prison costs. "Insurance fraud is a serious crime that demands serious consequences," the Coalition Against Insurance Fraud, National Insurance Crime Bureau, National Health Care Anti-Fraud Association and the International Association of Special Investigation Units said in their joint letter. Weaker penalties and the lower threat of prosecution could cause organized fraud rings such as health-fraud and staged-accident rings to move into California to try to involve residents in their schemes, the groups warned.

Calif. Plan to Cut Penalties on Insurance Crime Protested (National Underwriter 6/29/09)

Filed under: