How can insurance fraud be defined?

Insurance fraud is defined as intentional deception or misrepresentation made with the aim of unlawfully benefiting from an insurance policy. This can occur in various forms, such as providing false information when applying for coverage, inflating claims, or staging accidents. The key element of this definition is the intent behind the actions; fraud involves a deliberate effort to deceive for personal gain.

The other options, while related to the insurance process, do not encompass the essence of fraud. Unintentional errors in filing claims are typically accidental and do not involve deceit. Acts of negligence by the insurer reflect failures in service rather than deceptive practices. Similarly, delays in processing legitimate claims may be frustrating, but they do not involve intentional misrepresentation or deceit, which are critical components of fraud. Thus, the definition emphasizing intentional deception distinctly captures the nature of insurance fraud.