Insurers writing certain lines of insurance in California must establish what unit to investigate possible fraudulent claims?
a.A FAIR Plan committee
b.A Department of Managed Health Care liaison
c.A Special Investigative Unit (SIU)
d.A Property Loss Research Bureau
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.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 →
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