California Insurance Code & EthicsQuestion 67 of 315
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 only by fine
d.A misdemeanor in all cases
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, §1879Practice all 315 questions free — no signup required.
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)