Insurer Is Required to Pay for Insurance Crimes
Insurers are compelled by statute and regulation to maintain Special Fraud Investigation Units and a detailed anti-fraud program. The California Department of Insurance audits insurers regularly to ensure that each insurer works hard to investigate and seek prosecution of the crime of insurance fraud. Simultaneously, the same Department of Insurance punishes insurers for not paying claims rapidly or for not treating insureds or claimants fairly. Courts and juries will assess punitive and exemplary damages against insurers who accuse their insureds of fraud.
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