Insurance Fraud Is a Felony
Referrals on suspected insurance fraud are handled by the California Department of Insurance (CDI) Enforcement Branch and may be prosecuted as a felony. The punishment for committing insurance fraud ranges from probation, fines, community service, restitution, confinement in county jail and/or state prison. Fraud occurs when someone knowingly lies to obtain a benefit or advantage to which they are not otherwise entitled or someone knowingly denies a benefit that is due and to which someone is entitled.
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