Which of the following describes an action likely to result in claims under an insurance policy?

Insurance Fraud is defined as an intentional act of deception designed to secure an unfair or unlawful gain, often at the expense of an insurer. Actions categorized as insurance fraud—such as providing false information on a claim, staging accidents, or inflating damage estimates—are serious violations that can lead to claims being filed under an insurance policy as part of uncovering the fraudulent actions.

These fraudulent acts are significant because they alter the conventional dynamics of claims. In a typical insurance claim, the insured party has a legitimate claim due to unforeseen events that are covered by their policy. In contrast, insurance fraud involves manipulation of the claims process, which typically results in legal repercussions and can lead to denied claims or prosecution of the party involved.

The other options, while relevant to the insurance context, do not inherently describe actions likely to result in claims under an insurance policy. Insurable Interest refers to the requirement that an insured must stand to suffer a financial loss if the insured event occurs. Risk Assessment involves evaluating potential risks to determine premiums and coverage, which doesn’t directly lead to claims. Causation is a principle that establishes the relationship between an event and damage but is not an action itself that would result in claims. Thus, understanding these distinctions is vital for public adjust