Question

28. According to the California Law, if an insurer includes a fraudulent claim clause in the contract regarding the legal ramifications of a false claim, the clause must be preceded by which of the following statements?

(Choose from the following options)
1. "State law requires that insurance fraud be reported to county, state and federal authorities for the maximum prosecution allowed by law."
2. "WARNING! The following conditions are in accordance with California Law."
3. "For your protection, California Law requires the following to appear on this form."
4. "The legal ramifications only apply to insurance professionals."

Answer 1

According to California law, the fraudulent claim clause in an insurance contract must be preceded by the statement: 'For your protection, California Law requires the following to appear on this form.'

Step-by-step explanation:

The correct statement that must precede the fraudulent claim clause in the contract, according to California law, is option 3: "For your protection, California Law requires the following to appear on this form." This statement alerts the insured that the clause is mandated by the law for their protection. It emphasizes the importance of the clause in relation to the legal requirements of the state.