California Insurance Code & EthicsQuestion 47 of 474
Section 1875.20 requires admitted insurers writing personal auto coverage in California to maintain which of the following?
a.A trust account for unclaimed premium refunds
b.A consumer complaint hotline staffed 24 hours per day
c.Quarterly disclosure of executive compensation
d.A Special Investigative Unit (SIU) to identify suspected fraud
Explanation
Insurance Code §1875.20 et seq. requires admitted insurers writing private passenger auto and certain other lines to establish a Special Investigative Unit (SIU) to investigate suspected fraudulent claims and refer them to the Department of Insurance Fraud Division and law enforcement.
Law Reference: Cal. Ins. Code §1875.20This 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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