What is considered insurance fraud?

Insurance fraud is defined as a deliberate act to deceive an insurer. This involves intentionally misrepresenting or concealing information with the aim of obtaining an undeserved financial benefit from an insurance policy. This deceitful conduct can take various forms, including falsifying claims, exaggerating damages, or providing false information when applying for coverage.

The other choices do not meet the criteria for insurance fraud. A misunderstanding of policy terms is typically a genuine error or confusion rather than a willful act of deception. Failing to file a claim does not involve deception and is not an actionable offense under fraud statutes. Reporting an accident after a certain period may violate policy terms or local laws but does not inherently involve deceit or intent to defraud the insurer. Therefore, only the deliberate act to deceive an insurer is classified as insurance fraud.