State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
In California, applications and claim forms for insurance are required by Section 1871.2 to contain:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 1871.2 requires a fraud warning on insurance applications and claim forms. The warning tells signers that submitting false or fraudulent information is a crime and can result in prosecution, including for perjury. This deters fraudulent claims and reinforces the accuracy duties that apply when an application or claim is signed.
Why the other options are wrong
- B) Investment strategy is confidential business information of the insurer, not part of consumer forms.
- C) Forms must contain the fraud warning, not waivers of consumer protections.
- D) The fraud warning concerns false statements; displaying a social security number prominently is not a statutory requirement.
Memory hook
Sign the warning before you sign the form: false statements on applications and claims are crimes.