Section 1389.8 Of Article 7.5. Underwriting Practices From California Health And Safety Code >> Division 2. >> Chapter 2.2. >> Article 7.5.
1389.8
. (a) Notwithstanding any other provision of law, an agent,
broker, solicitor, solicitor firm, or representative who assists an
applicant in submitting an application to a health care service plan
has the duty to assist the applicant in providing answers to health
questions accurately and completely.
(b) An agent, broker, solicitor, solicitor firm, or representative
who assists an applicant in submitting an application to a health
care service plan shall attest on the written application to both of
the following:
(1) That to the best of his or her knowledge, the information on
the application is complete and accurate.
(2) That he or she explained to the applicant, in
easy-to-understand language, the risk to the applicant of providing
inaccurate information and that the applicant understood the
explanation.
(c) If, in an attestation required by subdivision (b), a declarant
willfully states as true any material fact he or she knows to be
false, that person shall, in addition to any applicable penalties or
remedies available under current law, be subject to a civil penalty
of up to ten thousand dollars ($10,000). Any public prosecutor may
bring a civil action to impose that civil penalty. These penalties
shall be paid to the Managed Care Fund.
(d) A health care service plan application shall include a
statement advising declarants of the civil penalty authorized under
this section.