Insurance Commissioner Dave Jones Announces Joint Effort In Battle To Fight California's Underground Economy
News: 2011 Press Release
Insurance Commissioner Dave Jones today announced that the California Department of Insurance (CDI) is joining with the Department of Industrial Relations (DIR) and other allied agencies to fight labor law and insurance related violations that exist in an underground economy.
The newly created Labor Enforcement Task Force (LETF), which will be headed by the DIR, will launch on January 1, 2012 and will be a collaborative effort along with the Attorney General, Employment Development Department, Contractor's State Licensing Board, Board of Equalization, the Bureau of Automotive Repair and local district attorneys.
"I am pleased to join this collaborative effort to protect California workers," said Insurance Commissioner Dave Jones. "I am committed to fair competition for honest business owners."
The Department's focus in this collaboration will be on those unscrupulous employers who under report payroll or misclassify employees in order to obtain a lower rate for workers' compensation coverage, thus committing premium fraud. This gives business owners, operating illegally in the underground economy, an unfair advantage over honest and law abiding employers when competing for business.
Since Commissioner Jones took office on January 1, the Department has pursued businesses operating illegally in the underground economy. Investigations have been conducted which have led to the arrest of 47 business owners for premium fraud involving approximately $41 million in unpaid premiums.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
