Types of Insurance fraud

Question 1

Material fact

Answer 1

fact that would affect the insurer’s decision to provide or maintain insurance or to settle a claim

Question 2

Staged accident

Answer 2

accident deliberately caused

Question 3

Hard fraud

Answer 3

deliberate actions to defraud

Question 4

Soft fraud or opportunity fraud

Answer 4

legitimate claim is exaggerated

Question 5

Misrepresentation

Answer 5

false statement of a material fact on which a party relies

Question 6

Concealment

Answer 6

failure to disclose a material fact

Question 7

Fraud exists when?

Answer 7

• intentional untrue representation
• concerns an important or a material fact
• is knowingly made
• intended to deceive
• victim relies on and acts on the untrue representation
• victim suffers some detriment, such as loss of money and/or property