A deliberate lie by an insured to the insurance company to obtain a lower premium is an example of

Rationale

Fraud.

In the realm of insurance, deliberately providing false information to secure a lower premium constitutes fraud, as it involves intentional deception for financial gain.

A (estoppel.) YOUR ANSWER

Estoppel is a legal principle that prevents one from asserting a claim or right that contradicts what one has previously stated or agreed upon. It does not directly relate to the act of providing false information to an insurance company.

B (twisting.) YOUR ANSWER

Twisting in insurance refers to the illegal practice of persuading a policyholder to surrender an existing policy to purchase a new one that is unnecessary or unsuitable. This concept does not align with the scenario of providing false information for a lower premium.

C (fraud.) CORRECT

Deliberately lying to an insurance company to obtain a lower premium falls under the category of insurance fraud. This action is considered fraudulent due to the intentional misrepresentation of facts for personal financial benefit.

D (malfeasance.) YOUR ANSWER

Malfeasance refers to the wrongful or unlawful behavior, especially by a public official or a person in a position of authority. While providing false information to an insurance company may involve unethical behavior, it does not specifically fall under the definition of malfeasance.

Conclusion

Among the options provided, the deliberate act of lying to an insurance company in order to secure a lower premium is most accurately categorized as insurance fraud. This behavior constitutes a deliberate misrepresentation of facts for personal financial gain, violating the principles of honesty and integrity in insurance transactions.

A deliberate lie by an insured to the insurance company to obtain a lower premium is an example of

Fraud.

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