California Insurance Code & EthicsQuestion 48 of 474
An insurer reports to law enforcement information about a homeowners claim it reasonably believes is fraudulent. Under §1879.5, the insurer is:
a.Immune from civil liability for the disclosure if made in good faith and without malice
b.Required to obtain the insured's written consent before making the report
c.Required to wait until criminal charges are filed before sharing the file
d.Liable for defamation if the suspect is not eventually convicted
Explanation
Insurance Code §1879.5 grants insurers, their employees, and authorized agents immunity from civil liability for furnishing information about suspected insurance fraud to the Department of Insurance or law enforcement, provided the disclosure is made in good faith and without fraudulent intent or actual malice.
Law Reference: Cal. Ins. Code §1879.5This 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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