Property, Life and Casualty Fraud
The Property, Life and Casualty Fraud Program accounts for approximately five percent (5%) of the Fraud Division's allocated budgetary resources. This program handles criminal investigations that may involve millions of dollars in losses and multiple claims for the same loss. The types of cases may include (but not limited to):
- life insurance fraud, including murder for profit
- fraud perpetrated during natural disasters, (wildfires, floods, earthquakes)
- embezzlement cases perpetrated by a company's employee or former employee
Many of these cases are investigated in cooperation with local law enforcement agencies, other state departments and federal law enforcement agencies resulting in prosecutions at either the federal, state, or local level.
Section 1872.86 of the California Insurance Code authorizes the funding for this program. Insurers doing business in the state, pay an annual special purpose assessment not to exceed five thousand one hundred dollars ($5,100), that is determined by the insurance commissioner. There is no local assistance component to this program.
During fiscal year 2015-16, the Fraud Division identified and reported 5,271 SFCs, assigned 81 new cases, made 46 arrests and referred 44 submissions to prosecuting authorities. Potential loss amounted to $1,222,784,707.