SECTIONS 750-754 - California Statutes

INSURANCE CODE

SECTION 750-754

750. (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 the county jail for not more than one
year, or by imprisonment in the state prison, 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 in the state prison or by imprisonment in
the state prison 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.

750.4. Section 750 of the Insurance Code, Sections 3215 and 3219 of
the Labor Code, and Section 549 of the Penal Code shall not apply to
any person, corporation, partnership, association, or firm, that is
operating under both of the following circumstances:
(a) On behalf of an insurer or self-insured person, company,
association, or group.
(b) Pursuant to, and within the scope of, a certificate of consent
issued pursuant to Section 3702.1 of the Labor Code or pursuant to,
and within the scope of, a license issued pursuant to Article 3
(commencing with Section 14020) of Chapter 1 of Division 5.

750.5. Nothing in Section 750 of the Insurance Code, Section 549 of
the Penal Code, or Section 3215 of the Labor Code shall be construed
to prevent an attorney or law firm from the following:
(a) Dividing fees for legal services with a lawyer under
circumstances expressly permitted by Rule 2-200 of the Rules of
Professional Conduct of the State Bar.
(b) Offering or giving an incidental nonmonetary gift or gratuity
to a person who has made a recommendation resulting in the employment
of the attorney or law firm, provided that the gift or gratuity was
not offered in consideration of any promise, agreement, or
understanding that the gift or gratuity would be forthcoming or that
referrals would be made or encouraged in the future.
(c) Offering or giving a bonus to an employee who has made a
referral or recommendation resulting in the employment of the
attorney or law firm, provided that the bonus was not offered in
consideration of any promise, agreement, or understanding that the
bonus would be forthcoming or that referrals or recommendations would
be made or encouraged in the future.

753. (a) It is unlawful for any insurance agent or broker, or any
insurance solicitor employed thereby, to receive any financial
benefit from an automobile repair facility or any other form of
direct or indirect consideration from any person for referring
insureds to that person or that person's designee for vehicle repairs
covered under the automobile comprehensive coverage, property damage
coverage, or automobile collision coverage, of an insurance policy
issued through the insurance agent or broker or by an insurer
represented by the insurance agent.
(b) Subdivision (a) applies with respect to commercial and
noncommercial policies of automobile insurance.
(c) For purposes of this section, "financial benefit" means the
receiving of any commission or gratuity, discount on repair costs,
free repairs, or employment by a repair facility.

754. (a) It is unlawful for any person to solicit, receive, offer,
or pay any referral fee for the referral of an individual for the
furnishing of services or goods for which the person knows or should
have known whole or partial reimbursement is or may be made, directly
or indirectly, by any insurer. As used in this section, a referral
fee is a fee paid by a person furnishing goods or services to another
in return for the referral of an individual to that person for the
furnishing of services or goods. It includes any referral fee,
kickback, bribe, or rebate, whether made directly or indirectly,
overtly or covertly, or in cash or in kind. This subdivision does not
apply to any of the following:
(1) Discounts or similar reductions in prices.
(2) Referral fees between attorneys if legal services are provided
pursuant to a contingency fee arrangement if any referral fee is
consistent with the Rules of Professional Conduct of the State Bar of
California.
(b) This section applies to all forms of insurance covering a
motor vehicle, including commercial and personal lines, and
comprehensive coverage, property damage coverage, collision coverage,
and liability coverage.
(c) A violation of this section is a misdemeanor punishable by a
fine not to exceed one thousand dollars ($1,000) for each violation.
Proceedings to enforce this section may be brought by any district
attorney or other prosecuting attorney.