Which term encompasses fraud that includes false claims and intentional losses?

Which term encompasses fraud that includes false claims and intentional losses?

• A. Willful fraud
• B. Staged fraud
• C. Hard fraud
• D. Soft fraud

Answer: (C)

This question tests recognizing fraud by intent and falsity. Hard fraud is the term for deliberate acts to create a loss or fabricate a claim to obtain an insurance payout, which includes making up injuries or staging an incident and submitting a false claim. That combination—intentional loss and false claims—falls squarely under hard fraud. Soft fraud, by contrast, involves exaggerating a legitimate claim rather than creating a false loss from scratch. Staged fraud is a specific form of hard fraud focusing on creating the loss through staging, but the broader category that covers both false claims and intentional losses is hard fraud.

This question tests recognizing fraud by intent and falsity. Hard fraud is the term for deliberate acts to create a loss or fabricate a claim to obtain an insurance payout, which includes making up injuries or staging an incident and submitting a false claim. That combination—intentional loss and false claims—falls squarely under hard fraud.

Soft fraud, by contrast, involves exaggerating a legitimate claim rather than creating a false loss from scratch. Staged fraud is a specific form of hard fraud focusing on creating the loss through staging, but the broader category that covers both false claims and intentional losses is hard fraud.