SECTIONS 10400-10402.1 - California Statutes

INSURANCE CODE

SECTION 10400-10402.1

10400. Any person willfully violating any provision of this chapter
or order of the commissioner made in accordance therewith shall
forfeit to the people of this state a sum not to exceed one hundred
eighteen dollars ($118) for each such violation, which sum may be
recovered by civil action. The commissioner may also suspend or
revoke the license of an insurer or agent for any such willful
violation.

10401. Any incorporated insurer admitted for disability insurance
and any agent of such insurer, that makes or permits any
discrimination between insureds of the same class in any manner
whatsoever with relation to such insurance, is guilty of a
misdemeanor.
The payment to insureds by an insurer of alternative rates of
payment negotiated and contracted for with institutional providers
shall not constitute a violation of this section.
On and after July 1, 1983, the amendments made to this section
during the 1982 portion of the 1981-82 Regular Session, shall also be
applicable with respect to both professional and institutional
providers.

10402. Any person who, without the prior authorization of an
insurer or plan solicits a provider to enter into a contract for
alternative rates under Section 10133 or 11512 of this code on behalf
of such insurer or plan shall be guilty of a misdemeanor.
An insurer or plan which contracts for, or authorizes another
person to, solicit or contract for alternative rates with providers
on its behalf other than in the name of such insurer or plan shall be
guilty of a misdemeanor.

10402.1. An insurer or plan which accepts or ratifies a contract
for alternative rates known by it to have been executed by a provider
prior to the insurer's or plan's authorization, in reliance on the
representation that it was authorized by such insurer or plan, shall
be guilty of a misdemeanor.