Section 750 Of Article 5. Unlawful Referrals From California Insurance Code >> Division 1. >> Part 2. >> Chapter 1. >> Article 5.
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 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.