All of the following are considered to be fraud EXCEPT

• A. Filing false claims
• B. Altering policy documents
• C. Collecting an insurance charge that is less than what is required
• D. Withholding premium payments to avoid coverage

Answer: (C)

Fraud in insurance relies on intentional deception to gain something of value from the insurer. Filing a claim you know is false, or altering policy documents to misstate terms, are clear examples because they involve deliberate deceit to obtain money or better terms. Withholding premium payments to avoid coverage also fits, since it’s a deliberate act to sidestep paying for the protection and still receive it.

Collecting an insurance charge that’s less than what’s required, however, isn’t inherently fraudulent. It can result from an honest error, a discount, or an adjustment that wasn’t finalized, and it lacks the necessary intent to deceive the insurer. So that item is the exception.