Insurance fraud in the State of California is extensive; it is estimated that the cost of insurance fraud committed annually in the area of worker’s compensation insurance is between $1-3 billion dollars. Automobile insurance fraud costs each consumer an additional two hundred dollars per policy of automobile insurance every year. These costs of insurance fraud are borne both directly by the individual policyholder and indirectly by the consumer as the costs of goods and services increase to accommodate the higher premiums paid by businesses. Currently, California law addresses the issue of deterrence and detection of such insurance fraud through a statutory scheme. California Insurance Code Section 1872.50 requires that every insurer admitted to do business in the state shall maintain a unit or division to investigate possible fraudulent claims; these units are referred to as Special Investigative Units or alternatively, SIU’s.