What is defined as "insurance fraud"?

Insurance fraud is specifically defined as intentionally deceiving an insurer for personal gain. This involves actions where an individual or entity knowingly provides false information or engages in deceptive practices with the intention of obtaining an undeserved benefit, often financial. Such fraud undermines the insurance system by causing financial losses to companies and increasing costs for policyholders through higher premiums.

The other options, while potentially unethical or problematic in the context of insurance, do not encapsulate the essence of insurance fraud. Denying legitimate claims can be a part of an insurer’s claim handling process but is not inherently fraud if the denial is justified. Misrepresenting personal information for lower premiums constitutes a form of fraud, but it doesn’t fully capture the broader definition that includes the intention to deceive insurers in various ways. Failing to disclose previous claims when applying for insurance is misleading and may lead to penalties or higher rates, but again, it focuses on one particular act rather than the overarching behavior that defines insurance fraud. In contrast, option B clearly encapsulates the deliberate intention behind fraudulent actions in the insurance industry.