Citing Economic Downturn, Commission Denies Additional Funding for Anti-Fraud Efforts

The California Department of Insurance’s Fraud Assessment Commission on Wednesday voted against additional funding for anti-fraud enforcement, citing the recent economic slowdown and a desire to lessen the burden on the state’s employers.  Commissioners voted 5-1 to maintain the current aggregate assessment of $77.9 million, which is paid for by a surcharge to California employers in order to finance prosecutors who focus on workers’ comp fraud. While commissioners said they appreciated prosecutors’ efforts over the past few years, the financial turmoil...