Introduction and Learning Objectives

Introduction

Insurance fraud undermines the integrity of the entire insurance system. It leads to higher premiums, erodes consumer trust, and can involve both claimants and industry professionals. California mandates anti-fraud training to educate licensees on their responsibilities in preventing, detecting, and reporting fraud.

Learning Objectives

By the end of this chapter, you should be able to:

• Identify the role of California’s Fraud Division and its enforcement authority
• Recognize types of insurance fraud and common indicators
• Understand insurer and agent responsibilities regarding anti-fraud efforts
• Identify fraud detection and reporting tools
• Apply proper procedures when fraud is suspected