Under §1871.4, knowingly presenting a false or fraudulent claim for payment of a loss under an insurance contract is:
a.A misdemeanor punishable by a fine of not more than $1,000, with no possibility of any jail time
b.Not a crime unless the claim exceeds $950, the felony theft threshold set by Proposition 47
c.Only a civil matter, resolved by the Department of Insurance Fraud Division through restitution and license suspension
d.A felony or misdemeanor punishable by up to five years in state prison
Explanation
Insurance Code §1871.4 makes it unlawful to knowingly present any false or fraudulent claim for the payment of a loss; the offense is a wobbler punishable by imprisonment in state prison for two, three, or five years, or by a fine, or both. There is no minimum dollar threshold.
Law Reference: Cal. Ins. Code §1871.4This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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