Insurance Code § 1871.2 – Insurance Fraud Prevention Authority
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Insurance Code § 1871.2 – Insurance Fraud Prevention Authority
California Law
Insurance Code – INS
DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 – 1879.8]
( Division 1 enacted by Stats. 1935, Ch. 145. )
PART 2. THE BUSINESS OF INSURANCE [680 – 1879.8]
( Part 2 enacted by Stats. 1935, Ch. 145. )
CHAPTER 12. The Insurance Frauds Prevention Act [1871 – 1879.8]
( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. )
ARTICLE 1. False and Fraudulent Claims [1871 – 1871.10]
( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. )
1871.2.
(a) An insurer who, in connection with any insurance application, contract, or provision of contract, prints, reproduces, or furnishes a form to any person upon which that person applies for a policy, seeks to amend insurance coverage, or furnishes information relating to underwriting criteria affecting premium or eligibility for coverage, under an existing policy, or gives notice of a claim to the insurer or makes a claim against the insurer by reason of accident, injury, death, or other noticed or claimed loss, shall cause to be printed or displayed in comparative prominence with other content on the form, exclusive of schedules attached to the form, or an endorsement separate from the form, the statement: “Any person who knowingly presents false or fraudulent information to obtain or amend insurance coverage or to make a claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison.” This statement shall be preceded by the words: “For your protection California law requires the following to appear on this form” or other explanatory words of similar meaning.
(b) This section is not applicable to a contract of reinsurance as defined in Section 620.
(Amended by Stats. 2023, Ch. 217, Sec. 1. (SB 743) Effective January 1, 2024.)
California Law Summary
This statute requires insurers to include a specific anti-fraud warning on various insurance-related forms. The warning must be prominently displayed on forms used for:
Applying for an insurance policy,
Amending existing coverage (including changes affecting premiums),
Submitting claims for losses due to accident, injury, death, or other events.
Required Language:
The warning must be preceded by the phrase:
“For your protection California law requires the following to appear on this form”
Followed by:
“Any person who knowingly presents false or fraudulent information to obtain or amend insurance coverage or to make a claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison.”
Purpose
To deter insurance fraud by informing applicants and claimants of the legal consequences associated with submitting false or misleading information.
Application
This provision is particularly relevant in personal injury claims, where accurate information is crucial. It serves as a legal safeguard, ensuring that individuals are aware of the penalties for fraudulent activities, thereby promoting honesty and integrity in the claims process.
