23. A deliberate lie by an insured to the insurer to obtain coverage that they would NOT otherwise be entitled to is an example of
Answer: C
Fraud is a deliberate lie by an insured to the insurer to obtain coverage.
Fraud occurs when an individual intentionally deceives another party—in this case, the insurer—to gain an advantage, such as coverage that they would not normally receive.
A) concealment.
Concealment refers to the act of intentionally hiding or failing to disclose information that is relevant to the insurance contract. While it involves dishonesty, it does not specifically entail a deliberate lie aimed at obtaining coverage, making it distinct from fraud.
B) estoppel.
Estoppel is a legal principle that prevents a party from arguing something contrary to a claim they previously made when another party has relied on the original claim. This concept does not involve deceit or a false representation and is not applicable in the context of obtaining insurance coverage through lies.
C) fraud.
Fraud is characterized by intentional deception for personal gain, such as an insured lying to the insurer to secure coverage they are not entitled to. This option directly aligns with the definition provided in the question, making it the correct choice.
D) misrepresentation.
Misrepresentation involves providing false or misleading information; however, it does not necessarily carry the same intent to deceive for personal gain as fraud does. While it can overlap with fraud in some contexts, the term fraud more accurately captures the deliberate nature of the act described in the question.
Conclusion
Fraud is the most accurate term for the act of intentionally lying to an insurer to gain undeserved coverage. While other options, like concealment and misrepresentation, involve dishonesty, they do not encapsulate the specific intent to deceive for personal gain as effectively as fraud does. Thus, option C is the definitive answer.