Root Out & Prosecute Fraud

In 2017, the California State Auditor found that because of a lack of resources and staff, CDI investigations have dwindled. The report found that across all types of insurance, CDI has only been able to investigate 5% of all suspected cases of fraud. For example, CDI had to close about 40% of suspected workers’ compensation insurance fraud without even investigating the facts. The report also found that 27% of investigator positions were left vacant as of February last year. There is no way CDI can accomplish one of its main missions if more than 1-in-4 investigators has not been hired. These facts are alarming because, as the largest consumer protection agency in the state, CDI has clearly been neglecting its responsibility to the people of California, who are being deceived and victimized by predators daily.

As Insurance Commissioner. Dr. Mahmood pledges to fully institute the recommendations of the auditor and aggressively prioritize rooting out instances of potential fraud. This includes developing and implementing a retention plan to ensure that CDI retains its investigation staff, as well as creating a public report that ranks workers’ compensation insurers based on the effectiveness of their anti-fraud efforts. It also includes insuring that CDI is using its resources effectively so that its anti-fraud and investigation units have the support necessary to actually protect Californians.