Reporting Auto Insurance Fraud In California: What You Need To Know

Auto insurance fraud is a serious issue in California, with fraud rings employing increasingly sophisticated tactics such as staged accidents and fraudulent claims. To combat this, the state has established dedicated units within the District Attorney's Office and the Department of Insurance to investigate and prosecute these crimes. If you suspect someone of committing auto insurance fraud in California, you can report it to the California Department of Insurance using their online form or by mailing the Consumer Insurance Fraud Reporting Form to their Enforcement Branch Headquarters. Alternatively, you can contact the Fraud Division Regional Office responsible for your county. It's important to note that individuals reporting in good faith are protected from civil liability under California Insurance Code sections 1872.51 and 1879.5.

How to report auto insurance fraud in California anonymously

Auto insurance fraud is a serious issue in California, with penalties including prison time and hefty fines. If you suspect or witness auto insurance fraud, you can take the following steps to report it anonymously:

Online Reporting:

The California Department of Insurance has developed an online Consumer Fraud Reporting Portal for the general public and licensed California agents or brokers to report suspected insurance fraud. This method allows you to submit your report electronically and remain anonymous. The portal can be accessed through the Department of Insurance's website, and no personal information is required to file a report.

Contact the Fraud Division:

If you prefer to report by phone or mail, you can directly contact the Fraud Division Regional Office responsible for your county. The contact information for the Fraud Division offices can be found on the California Department of Insurance website. When contacting them, you can choose to remain anonymous and provide the details of the suspected fraud.

National Insurance Crime Bureau (NICB):

The NICB is a non-profit organization that works with insurance companies and law enforcement to identify, detect, and prosecute insurance criminals. You can report suspected auto insurance fraud anonymously to the NICB by calling their toll-free number, 800.TEL.NICB (800.835.6422), or by using the report fraud form on their website.

Local FBI Offices:

Insurance fraud can also be reported to local FBI offices. While it is not specified if this can be done anonymously, contacting them may provide further guidance on reporting options.

Remember, when reporting auto insurance fraud anonymously, provide as many details as possible about the suspected fraud, including names, locations, and any other relevant information. By taking action and reporting fraud, you play a crucial role in combating this issue and helping to protect others from financial harm.

Who to contact if the fraud is being committed by an agent or broker

If you suspect an insurance agent or broker of committing fraud in California, you can report it to the Investigation Division of the California Department of Insurance. The Department has developed a method for the general public to report suspected insurance fraud, and as per California Insurance Code section 1879.5, individuals filing a good-faith report will not be held liable for civil liability.

You can submit a report by filling out the Consumer Insurance Fraud Reporting Form and mailing it to the following address:

California Department of Insurance

Enforcement Branch Headquarters Intake Unit

2400 Del Paso Road

Suite 250

Sacramento, CA 95834

Alternatively, you can contact the Fraud Division Regional Office responsible for your county. The contact information for the Fraud Division is as follows:

Phone: 916-854-5760

Fax: 916-854-5848

It is important to note that reports of insurance fraud can be made anonymously. Additionally, if you are a licensed California agent or broker, you can also use the online form provided by the Department of Insurance to report suspected fraud.

Who to contact if the fraud is being committed by an employee, employer, medical provider, or legal provider

If you suspect auto insurance fraud is being committed by an employee, employer, medical provider, or legal provider in California, you should contact the Fraud Division of the California Department of Insurance.

The Fraud Division has been set up specifically to handle cases of suspected insurance fraud and is equipped to deal with these types of crimes. As per the California Insurance Code section 1879.5, you will not be subject to any civil liability for filing a good faith report of suspected insurance fraud.

To report the fraud, you need to complete the Consumer Insurance Fraud Reporting Form and send it by mail to the following address:

> California Department of Insurance

> Enforcement Branch Headquarters Intake Unit

> 2400 Del Paso Road Suite 250

> Sacramento, CA 95834

Alternatively, you can send the form by fax to 916-854-5848 or contact the office by phone on 916-854-5760.

There are also Fraud Division Regional Offices located across California, which you can contact or visit to file your report.

The California Penal Code for submitting fraudulent insurance claims

If you suspect someone of committing auto insurance fraud in California, you can report it to the California Department of Insurance. The department has developed an online form for members of the public and licensed California agents and brokers to report cases of suspected insurance fraud. This can be accessed through the Consumer Fraud Reporting Portal.

Alternatively, you can submit a Consumer Insurance Fraud Reporting Form by mail to the following address:

California Department of Insurance

Enforcement Branch Headquarters Intake Unit

2400 Del Paso Road Suite 250

Sacramento, CA 95834

As noted in California Insurance Code section 1879.5, no person shall be subject to civil liability for filing a good faith report of suspected insurance fraud to the Department of Insurance.

The California Penal Code 550 PC describes the crime of insurance claims fraud. This statute is used to prosecute anyone who knowingly submits false or fraudulent claims for insurance reimbursement. It is a crime for any person to knowingly:

• Make false statements when submitting an insurance claim
• Submit false information to an auto insurer to support a claim
• Stage an accident to defraud an auto insurer
• Submit multiple claims for the same loss

A violation of Penal Code 550 is charged as a felony and is punishable by two, three, or five years in a county jail following realignment, a fine of up to $50,000, or double the amount of fraud.

The consequences of being convicted of insurance fraud

Committing insurance fraud can have serious consequences, and it is a crime in all fifty states. The potential consequences depend on whether the offense is reported to the police for investigation and prosecution. An insurance company may detect fraud and decide to handle the issue internally by rejecting the application, canceling the policy, or denying the claim. They may also choose to notify the police.

If the case is prosecuted, punishments for insurance fraud include jail time, fines, or both. The court may also order restitution if the insurance company suffered financial losses due to the fraud. The severity of the penalties for insurance fraud varies depending on the amount of money obtained fraudulently, the jurisdiction, and the defendant's criminal history. For example, in Minnesota, insurance fraud of less than $500 carries a sentence of up to 90 days in jail and a fine of up to $1,000. In contrast, fraud of more than $35,000 can result in up to 20 years in prison and a fine of up to $100,000.

Committing insurance fraud can also have other repercussions beyond legal penalties. A person convicted of insurance fraud may find it challenging and costly to obtain insurance coverage in the future, as they will be considered a high-risk client. Additionally, insurance fraud hurts not just the insurance company but also society as a whole, as the losses are passed on to consumers in the form of higher insurance premiums.

Frequently asked questions