Governor Arnold Schwarzenegger recently signed into law AB 2866, legislation that requires individuals and companies convicted of workers’ compensation insurance fraud to be posted on the Web, according to the Gilroy Dispatch.
The California Department of Insurance is required to post the information, including the name of the individual or company, the punishment that was administered (including fines and length of jail time) and the amount of money defrauded in the scam.
The legislation was sponsored by Assembly Majority Leader Dario Frommer (D-Glendale). Lawmakers hoped that the postings will serve as an added punishment to those convicted of fraud and as a deterrent for committing workers’ comp fraud. Industry experts estimate that workers’ comp fraud costs California as much as $3 billion a year.
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