Define 'insurance fraud.'

Insurance fraud is defined as the act of deceiving an insurer to gain an undeserved benefit. This can occur in various forms, such as submitting false information on an insurance application, misrepresenting facts related to a claim, or fabricating damages or losses to receive a higher payout than warranted. The intent behind this act is to manipulate the insurance system for financial gain at the expense of the insurer and, ultimately, other policyholders.

This definition encompasses a broad scope of fraudulent actions within the insurance industry, making it a significant issue that insurers must address. It emphasizes the deceptive nature of the behavior involved, which is critical for understanding both the ethical and legal implications associated with insurance fraud. The focus on gaining an unjust advantage highlights the seriousness of this behavior and its impact on the overall insurance landscape.