North Carolina Adjuster Practice Exam 2025 - Free Adjuster Practice Questions and Study Guide

Question: 1 / 400

Which of the following is a common type of insurance fraud?

Inflating the value of a claim

Inflating the value of a claim is a common type of insurance fraud because it involves misrepresenting the actual value of a loss or damage in order to receive a greater payout than what is warranted. This dishonest practice undermines the integrity of the insurance system and can lead to increased premiums for all policyholders as insurers adjust their rates to account for fraudulent behavior.

In contrast, filing a claim for a lost item, seeking additional coverage, and neglecting to report an incident do not inherently constitute fraud. Filing a legitimate claim for a lost item is a standard part of utilizing insurance. Seeking additional coverage is a proactive measure for better protection and does not imply any malfeasance. Neglecting to report an incident might involve less transparency, but it does not involve the direct deceit implied in inflating a claim's value.

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Filing a claim for a lost item

Seeking additional coverage

Neglecting to report an incident

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