Starting in January of 2005 the LACPP became effective by “establishing a fund to be used exclusively for the protection of consumers who purchase life insurance and annuity products in the State of California.”
The fund is fueled by a $1 fee “assessed on all new individual life and annuity products valued over $15,000 sold to California residents.”
The money accumulated in this fund is “for use by both county District Attorneys and the Department of Insurance for outreach, education, investigation and prosecution.” The four counties awarded funds:
- Los Angeles County: $200,000
- Riverside County: $100,000
- San Diego County: $150,000
- San Francisco County: $50,000
These four counties have the highest number of seniors – the group most often victimized by life and annuity fraud.
Comment Preview