California Insurance Code & EthicsQuestion 41 of 215
Insurers writing certain lines of insurance in California must establish what unit to investigate possible fraudulent claims?
a.A Special Investigative Unit (SIU)
b.A Property Loss Research Bureau
c.A Department of Managed Health Care liaison
d.A FAIR Plan committee
Explanation
Article 4.5 of the Insurance Code (§1875.20 et seq.) requires insurers to maintain a Special Investigative Unit, or SIU, to detect and investigate suspected insurance fraud. The FAIR Plan handles residual property risks, not fraud investigation, and DMHC regulates HMOs.
Law Reference: Cal. Ins. Code §1875.20 et seq.Practice all 215 questions free — no signup required.
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