CA AB2138

Increases the annual special purpose assessment on disability insurers from $0.10 to $0.20 per insured to fund investigation and prosecution of health insurance fraud.

Changes fund distribution from 50/50 to 30% for the Department of Insurance Fraud Division and 70% for local district attorneys.

Requires district attorneys receiving funds to submit applications showing likely positive outcomes, detailed budgets, and final accountings for cases or projects funded.

Authorizes insurers to recoup the assessment through premium surcharges or by including the fee within rates, with surcharges separately stated on billing or policy declarations.

Requires the Insurance Commissioner to adopt regulations implementing these provisions and conduct fiscal audits of programs administered under the section.