What is the definition of insurance fraud?

The definition of insurance fraud encompasses the deliberate act of deceiving an insurance provider to gain benefits or coverage that one is not entitled to receive. This involves intentional actions, such as providing false information, exaggerating claims, or staging accidents, with the primary goal of securing unauthorized financial gains. Fraud is a serious offense in the insurance industry because it undermines the integrity of the insurance system and can lead to increased premiums for policyholders and significant financial losses for insurers.

In contrast to the correct answer, other options describe situations that do not involve intent to deceive for personal gain. Accidentally providing false information or making a mistake on an insurance application indicates errors rather than fraudulent behavior, as these acts generally do not involve the intent to mislead. A legal claim against an insurance company pertains to disputes over the terms of the policy or coverage rather than the intentional deceit that characterizes fraud. Thus, the key aspect of option B is the intentionality behind the deceit, marking it as the accurate definition of insurance fraud.