SB 1142 Summary

• Requires every admitted disability insurer doing business in California to pay an annual special purpose assessment of up to $0.20 per person covered under individual or group policies to fund fraud investigation and prosecution.

• Expands assessment coverage to include all persons in California covered under policies regardless of contract location or whether they hold an individual certificate of coverage, and includes blanket insurance.

• Limits data submission requirements to once per calendar year, with responses to commissioner questions and clarifications not counting as additional submissions; allows insurers to rely on group policyholder-provided information after reasonable effort.

• Distributes assessment funds with 30% to the Department of Insurance Fraud Division for investigations and 70% to local district attorneys for disability insurance fraud prosecution.

• Creates the Disability Insurance Fraud Account within the Insurance Fund and establishes application and reporting requirements for district attorneys receiving fraud investigation funds.