Former Cupertino insurance agent arraigned in $900,000 long-term care fraud scheme
News: 2024 Press Release
SAN FRANCISCO, Calif. — Jingjin “Kathy” Bian, 54, of Cupertino, was arraigned today on felony charges of insurance fraud after a California Department of Insurance investigation revealed she allegedly received over $900,000 in undeserved long-term care insurance benefits for her and her father.
Bian, a former insurance agent, was in a car accident in August 2018, resulting in a back injury and her filing claims to enact her long-term care benefits on her life insurance policy. The benefits were approved by her insurance company in January 2019 and she ended up receiving over $300,000 in benefits including for caregiver reimbursement.
The Department of Insurance began its investigation after her insurance company suspected fraud. Through surveillance she was observed performing activities independently, with no caregiver present, directly contradicting her claimed disabilities and reasons needing for caregiver reimbursement.
Bian was also the legal representative for her 81-year-old father, who lived with her and also had a life insurance policy with the same insurance company. In February 2018 Bian’s father was diagnosed with Parkinson’s disease and he filed a claim to enact the long-term care benefits on his insurance policy. The claim stated he required hands on assistance and required a walker when going outside. Bian’s father’s claim application for benefits was approved by the insurance company in February 2019 and he received over $600,000 in benefits.
Surveillance observed Bian’s father performing activities independently, with no caregiver present, directly contradicting his claimed disabilities. The investigation found that Bian was listed as her father’s legal representative in all correspondence and that all of her father’s policy correspondence, care provider scheduling, and billing were handled by Bian.
Bian’s alleged actions resulting in a loss of $900,000 to the insurance company. Bian is out on bail and is scheduled to return to court on April 16, 2025. The Santa Clara County District Attorney’s Office is prosecuting this case.
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Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
