Effective January 1, 2022, ISO has revised the California Fraud Statement for all lines of business to conform to recent revisions to the California Insurance Code § 1871.2.
The California Insurance Code referenced is being amended in part to require an insurer to print or display the fraud statement to any application, contract, or provision of contract; or whenever an insurer prints, reproduces, or furnishes a form to any person who either applies for a policy, requests a policy change, or gives notice or makes a claim under the policy.
The language of the newly revised fraud statement is as follows:
For your protection, California law requires the following to appear on this form (or other explanatory words of similar meaning):
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.
For your convenience, the revised IL N 018 California Fraud Statement is made available through our website.
Fraud costs the insurance industry more than $40 billion annually. Nationwide, the state insurance departments investigate and prosecute fraud perpetrated by those trying to obtain funds by defrauding insurers. Many departments have designated fraud units that work with local law enforcement and others in attempts to stop fraud. Common frauds are false and inflated homeowners and auto claims, staged auto accidents, staged burglaries, staged arson, and others.