An insured inflates a genuine $2,000 physical damage claim to $9,000 with invented repairs. Under the general provisions of the policy:
Explanation
The fraud provision states that coverage is not provided to any insured who has made fraudulent statements or engaged in fraudulent conduct in connection with an accident or loss for which coverage is sought. The consequence falls on the whole claim rather than on the padded part alone, so paying the honest portion understates what the provision does. The policy carries no scheduled fraud penalty.
This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Related questions on this topic
- A thief smashes a window of the insured's covered auto and takes a $1,400 laptop from the seat. Under Part D the insurer pays for:
- An insured is injured by a hit-and-run driver and wants to claim under Part C. Part E requires that she:
- Before a damaged covered auto goes in for repair, the duties in Part E require the insured to:
- An insured plans to drive her covered auto to a beach resort in another country for two weeks. The policy territory provision means she:
- An insured who carries the towing and labor costs endorsement has a dead battery in a car park and calls for roadside help. The endorsement:
- A named non-owner policy differs from an ordinary personal auto policy because it:
Last reviewed: · editorial process