What is considered an act of deceiving an insurance company to collect more than entitled?

• A. Fraud
• B. Misrepresentation
• C. Deception
• D. Negligence

Answer: (A)

Fraud is defined as an intentional act to deceive for the purpose of gaining something of value, often through dishonest means. In the context of insurance, fraud specifically involves intentionally providing false information or omitting pertinent details to receive benefits, payments, or coverage that one is not entitled to. An insurance company relies on the honesty of the information provided by policyholders, and when someone falsifies their claims or misstates their situation to collect more than they should, that action constitutes fraud.

Misrepresentation refers to a false statement or misleading statement, but it does not necessarily imply that the intent was to deceive for personal gain, as seen in fraud. Deception is a broader term that can apply to many scenarios of misleading, not all of which involve the legal definitions associated with insurance claims. Negligence is a failure to exercise reasonable care and does not involve intentional deception. Therefore, the best fit for the act of deceiving an insurance company for unauthorized gain is fraud, as it encapsulates the intent to deceive that is critical in these scenarios.