Life Chapter 4
Under the False and Fraudulent Claims Article, If a person is convicted of insurance fraud, the fine can be up to: A - $5,000 if prosectuted as a misdemeanor B - $25,000 C - $10,000 D - $150,000
D - $150,000 Rationale - If a person is convicted of insurance fraud, the fine can be up to $50,000 (or as much as twice the amount of the fraud, if greater) and up to five years in state prison. Prosecutors can prosecute insurance fraud as a misdemeanor, which could result in a fine of up to $10,000 and up to one year in county jail. In either case, full repayment to victims can also be required as part of a persons conviction for insurance fraud.
A life, health, or disability insurer can discriminate based upon: A - None of these can be used to discriminate against a proposed insured. B - Blindness or partial blindness. C - The fact that the proposed insured carries a gene that may be associated with a disability in that person or their offspring. D - Age and sex of the proposed insured
D - Age and sex of the proposed insured Rationale - The California code does not prohibit the use of age and sex in life, health, and disability as a factor for determining rating.
