What does "fraud, hard" refer to in an insurance context?

• A. Exaggerating claims
• B. Creating false evidence
• C. Deliberately faking incidents
• D. Using unethical sales tactics

Answer: (C)

In the insurance context, "fraud, hard" specifically refers to the act of deliberately faking incidents to claim insurance benefits that are not rightfully owed. This can include staged accidents or fabricated thefts, where the individual intentionally fabricates details to deceive the insurance company and receive financial compensation fraudulently. This type of fraud is considered serious because it undermines the integrity of the insurance system and often results in significant financial losses for insurance providers and higher premiums for all policyholders.

While exaggerating claims, creating false evidence, and using unethical sales tactics are also forms of misconduct within the insurance realm, they do not align with the precise definition of "hard fraud," which focuses on intentional and outright fabrications designed to deceive insurers directly.