Arkansas Insurance Adjuster Practice Exam

Question: 1 / 400

When someone exaggerates their injuries from a minor car accident to receive more from an insurance claim, they are guilty of:

Creating a morale hazard

Creating a physical hazard

Committing hard fraud

Committing soft fraud

Exaggerating injuries from a minor car accident for the purpose of receiving more money from an insurance claim is an example of soft fraud. This is because soft fraud refers to dishonest actions that may not cause any harm or serious loss, but are still considered fraudulent. In this scenario, the individual may be exaggerating their injuries in order to receive more compensation, which is dishonest and can lead to increased insurance costs for everyone. Options A and B are incorrect as they refer to creating a hazard, which is not applicable in this scenario. Option C is incorrect because hard fraud refers to more serious and deliberate acts, such as faking an accident, and does not apply here.

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