Which of the following is NOT considered fraud?

• A. Collecting an insurance charge that is less than what is required
• B. Falsifying an applicant's health information
• C. Misrepresenting policy benefits
• D. Embezzling premiums

Answer: (A)

Fraud in insurance practice requires intentional deception or misappropriation. Actions like falsifying an applicant’s health information, misrepresenting policy benefits, or embezzling premiums are clear attempts to deceive or steal, which fits fraud. Collecting a charge that’s less than what’s required isn’t automatically fraud; it could be a clerical error or a legitimate discount agreed upon, and without the intent to deceive or steal, it doesn’t meet the definition of fraud. So, this undercharged amount is not, by itself, considered fraud, whereas the other behaviors clearly involve deceit or theft.