California Insurance Code & EthicsQuestion 67 of 716
Knowingly presenting a false or fraudulent claim for payment under an insurance policy is, in California:
a.A civil violation only, with no criminal consequences
b.A felony, punishable by imprisonment, fines, and restitution
c.An infraction punishable by a fine and nothing more
d.A misdemeanor in all cases, with no prison sentence
Explanation
California treats insurance fraud as a felony under §1871.4 and related provisions, with imprisonment, substantial fines (often 2-5x the fraud amount), and restitution. Insurers must also maintain Special Investigative Units (SIUs).
Law Reference: Cal. Ins. Code §1872.4, §1879This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)