California Assembly Bill AB802 Latest Draft

 BILL NUMBER: AB 802AMENDED BILL TEXT AMENDED IN ASSEMBLY MAY 12, 2009 AMENDED IN ASSEMBLY APRIL 21, 2009 INTRODUCED BY Assembly Member Duvall FEBRUARY 26, 2009 An act to amend  Sections 1873 and 1874.1   Section 1873  of the Insurance Code, relating to insurance information. LEGISLATIVE COUNSEL'S DIGEST AB 802, as amended, Duvall. Insurance fraud: release of information: other unlawful activity. Existing law requires an insurer, or agent authorized by that insurer to act on behalf of the insurer, upon written request, to release to a requesting officer of an authorized governmental agency, as defined, any or all relevant information deemed important to the authorized governmental agency that the insurer may possess relating to any specific insurance fraud. This bill would also require the insurer, or agent authorized by that insurer to act on behalf of the insurer, to release to the authorized governmental agency any or all relevant information deemed important to the authorized governmental agency that the insurer may possess relating to any other unlawful activity  recovered   uncovered  in the course of an insurance fraud investigation.  This bill would state that the Bureau of Automotive Repair, the Medical Board of California, and the State Bar of California are included as authorized governmental agencies, as specified.  Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1873 of the Insurance Code is amended to read: 1873. (a) Upon written request to an insurer by officers designated in subdivisions (a) and (b) of Section 830.1 and subdivision (a) of Section 830.2, and subdivisions (a), (c), and (i) of Section 830.3 of the Penal Code, an insurer, or agent authorized by that insurer to act on behalf of the insurer, shall release to the requesting authorized governmental agency any or all relevant information deemed important to the authorized governmental agency that the insurer may possess relating to any specific insurance fraud or any other unlawful activity  recovered   uncovered  in the course of an insurance fraud investigation. Relevant information may include, but is not limited to, all of the following: (1) Insurance policy information relevant to the insurance fraud under investigation, including, but not limited to, any application for a policy. (2) Policy premium payment records that are available. (3) History of previous claims made by the insured. (4) Information relating to the investigation of the insurance fraud, including statements of any person, proof of loss, and notice of loss. (5) Complete copies of both sides of payment drafts.  (6) Information about an illegal activity not related to insurance fraud that is uncovered when investigating an allegation of insurance fraud.  (b) The provisions of subdivision (a) shall not operate to authorize disclosure of medical information not otherwise authorized for disclosure pursuant to law.  SEC. 2.   Section 1874.1 of the Insurance Code is amended to read: 1874.1. The following definitions govern the construction of this article, unless the context requires otherwise: (a) "Authorized governmental agency" means the Department of the California Highway Patrol, the Department of Insurance, the Department of Justice, the Department of Motor Vehicles, the police department of a city, or a city and county, the sheriff's office or department of a county, a law enforcement agency of the federal government, the district attorney of any county, or city and county, and any licensing agency governed by the Business and Professions Code, including the Bureau of Automotive Repair, the Medical Board of California, and the State Bar of California, or the Chiropractic Initiative Act. (b) "Relevant" means having a tendency to make the existence of any fact that is of consequence to the investigation or determination of an issue more probable or less probable than it would be without the information. (c) Information shall be deemed important if, within the sole discretion of the authorized governmental agency, that information is requested by that authorized governmental agency. (d) "Insurer" means the automobile assigned risk plan established pursuant to Section 11620 of the Insurance Code, as well as any insurer writing insurance for motor vehicles or otherwise liable for any loss due to motor vehicle theft or motor vehicle insurance fraud. (e) "Motor vehicle" means motor vehicle as defined in Section 415 of the Vehicle Code.