Immunity from liability for providing information about a suspected fraudulent insurance act is lost if the person acted with

Immunity from liability for providing information about a suspected fraudulent insurance act is lost if the person acted with

• A. Malice
• B. Good faith
• C. Honesty
• D. Accuracy

Answer: (A)

Immunity from liability applies when information about a suspected fraudulent insurance act is provided in good faith, with no malice. This protection is designed to encourage people to report suspected fraud without fear of being sued, as long as the reporter genuinely believes there is something to report and has not acted with improper motive. When someone acts with malice—intending to harm, knowing the information is false, or acting with reckless disregard for the truth—the immunity does not apply and they can be held liable. So, acts of good faith, honesty, and accuracy keep the protection intact, while malice destroys it.

Immunity from liability applies when information about a suspected fraudulent insurance act is provided in good faith, with no malice. This protection is designed to encourage people to report suspected fraud without fear of being sued, as long as the reporter genuinely believes there is something to report and has not acted with improper motive. When someone acts with malice—intending to harm, knowing the information is false, or acting with reckless disregard for the truth—the immunity does not apply and they can be held liable. So, acts of good faith, honesty, and accuracy keep the protection intact, while malice destroys it.