In California, a person who knowingly signs a fraudulent insurance claim statement that contains a false declaration under penalty of perjury:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
California's insurance fraud statutes, found in CIC Section 1871 et seq., criminalize knowingly presenting false or fraudulent insurance claims. When a claim statement contains a declaration that is made under penalty of perjury and the declarant knows it is false, the conduct may constitute perjury. The California Department of Insurance Fraud Division and prosecuting authorities pursue such conduct with both criminal and civil consequences, including fines and imprisonment. A conviction is not limited to a misdemeanor, a prosecution does not depend on whether the fraudulent claim was actually paid, and the exposure is not limited to a civil fine.
Why the other options are wrong
- C) Fraudulent claim conduct can be prosecuted as a felony as well as a misdemeanor under the fraud statutes, and a conviction carries a criminal record. The controlling legal standard set out above demonstrates precisely why this option is incorrect.
- A) Presenting a false claim is a violation even if the insurer detects the fraud and pays nothing. The offense is committed by the knowing submission of the false statement. This choice misstates what the statute actually requires, so it must be eliminated from consideration.
- B) Criminal penalties, including fines and possible imprisonment, apply. The exposure is not limited to a civil fine for knowing presentation of a fraudulent claim. This option reflects a different rule and does not match the law that governs the transaction.
Memory hook
A false claim sworn under penalty of perjury is perjury itself. Signed lies carry criminal weight.