(a)Except as provided in Section 750.5, any person acting individually or through his or her employees or agents, who engages in the practice of processing, presenting, or negotiating claims, including claims under policies of insurance, and who offers, delivers, receives, or accepts any rebate, refund, commission, or other consideration, whether in the form of money or otherwise, as compensation or inducement to or from any person for the referral or procurement of clients, cases, patients, or customers, is guilty of a crime.
(b)A violation of subdivision (a) is punishable upon a first conviction by imprisonment in a county jail for not more than one year, or by imprisonment
pursuant to subdivision (h) of Section 1170 of the Penal Code, or by a fine not exceeding fifty thousand dollars ($50,000), or by both that imprisonment and fine. A second or subsequent conviction is punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code or by that imprisonment and a fine of fifty thousand dollars ($50,000).
(c)Nothing in this section shall prohibit a licensed collection or lien agency from receiving a commission on the collection of delinquent debts nor prohibits the agency from paying its employees a commission for obtaining clients seeking collection on delinquent debts.
(d)Nothing in this section is intended to limit, restrict, or in any way apply to, the rebating of commissions by insurance agents or brokers, as authorized by Proposition 103, enacted by the people at the November 8, 1988, general
election.
Notes of Decisions
Cited in
18
cases (
2 in the last 5 years), 1972–2023 · leading case:
People v. Meneses, 165 Cal. App. 4th 1648 (Cal. Ct. App. 2008).
People v. Meneses, 165 Cal. App. 4th 1648 (Cal. Ct. App. 2008).
· cites it 3× “(b)(2)); receiving a referral fee in connection with an insurance claim (Ins. Code, § 750); and conspiring to steal public records and to commit insurance fraud (Pen.”
People v. Hering, 976 P.2d 210 (Cal. 1999).
· cites it 3× “” 3 In similar terms, Insurance Code section 750 provides in part that “any person acting individually or through his or her employees or agents, who engages in the practice of processing, presenting, or negotiating claims, including claims under policies of insurance, and who…”
United States v. Rogers, 389 F. Supp. 3d 774 (C.D. Cal. 2019).
· cites it 3× “Kickbacks Prohibited Under California Law The Indictment identifies California Business and Professions Code § 650 (" § 650") and California Insurance Code § 750 (" § 750") as the bases for the Travel Act element of "unlawful activity.”
Homestead Supplies, Inc. v. Exec. Life Ins., 81 Cal. App. 3d 978 (Cal. Ct. App. 1978).
“) Illegality — Enforceability Insurance Code section 750 2 reads: “An insurer, insurance agent, broker, or solicitor, personally or by any other party, shall not offer or pay, directly or indirectly, as an inducement to insurance on any subject-matter in this State, any rebate…”
United States v. Gross, 370 F. Supp. 3d 1139 (C.D. Cal. 2019).
· cites it 2× “) The Indictment identifies California Business and Professions Code § 650 (" § 650") and California Insurance Code § 750 (" § 750") as the bases for the Travel Act element of "unlawful activity.”
Associated California Loggers, Inc. v. Kinder, 79 Cal. App. 3d 34 (Cal. Ct. App. 1978).
“1 Insurance Code section 750 provides: “An insurer, insurance agent, broker, or solicitor, personally or by any other party, shall not offer or pay, directly or indirectly, as an inducement to insurance on any subject-matter in this State, any rebate of the whole or part of the…”
Mountain Fir Lumber Co. v. Emp. Benefits Ins. Co., 667 P.2d 567 (Or. Ct. App. 1983).
“*317 In a case involving California’s more stringent anti-rebate statutes, Cal. Ins. Code §§ 750 , 751, 752, a California court put it this way: “* * * [T]he effect of illegality on the enforceability of an agreement depends on the facts and circumstances of the particular case…”
People v. Guiamelon, 205 Cal. App. 4th 383 (Cal. Ct. App. 2012).
“) Hering also involved a similar statute—Insurance Code section 750. (Hering, supra, 20 Cal.”
Keniston v. Am. Nat'l Ins., 31 Cal. App. 3d 803 (Cal. Ct. App. 1973).
“) The experience rating refunds paid by respondent to Budget were specifically excepted from the prohibition against unlawful rebates (Ins. Code, § 750), since they represented the “return by an insurer issuing policies on a participating plan, or any portion of the premium as a…”
Escrow Inst. of Cal. v. Pierno, 24 Cal. App. 3d 361 (Cal. Ct. App. 1972).
“2d 101 ]; Ins. Code, §§ 750, 752, 755, 755.5, 761.) Turning to the requirement that an independent escrow agent must be a corporation (Fin.”
Connecticut Gen. Life Ins. v. New Images, 482 F.3d 1091 (9th Cir. 2007).
“…was neither requested nor given. The new theory appears merit-less on its face. 6 . See Cal. Bus. & Prof.Code § 650; Cal. Ins. Code §§ 750 , 1871.7; Cal.Penal Code §§ 549, 550. 7 . Fed.R.Civ.P. 37. 8 . Jorgensen v. Cassiday, 320 F.3d 906, 912 (9th Cir.2003). 9 . Jorgensen v.…”
Cal. Insurance Code § 750(a): 2 cases
United States v. Rogers, 389 F. Supp. 3d 774 (C.D. Cal. 2019).
“Kickbacks Prohibited Under California Law The Indictment identifies California Business and Professions Code § 650 (" § 650") and California Insurance Code § 750 (" § 750") as the bases for the Travel Act element of "unlawful activity.”
United States v. Gross, 370 F. Supp. 3d 1139 (C.D. Cal. 2019).
“) The Indictment identifies California Business and Professions Code § 650 (" § 650") and California Insurance Code § 750 (" § 750") as the bases for the Travel Act element of "unlawful activity.”
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