Insurance Fraud Question and answers
verified to pass 2025
A person who pads or adds to a legitimate claim commits which type of
insurance fraud?
a. soft fraud
b. hard fraud
c. internal fraud
d. domestic fraud - correct answer ✔a. soft fraud
Claim mills are organized fraud rings involving:
a. unscrupulous insurance agents
b. dishonest claims handlers
c. medical practitioners and lawyers
d. insurance consumers - correct answer ✔c. medical practitioners and
lawyers
What is the estimated cost of insurance fraud schemes?
a. 1 percent a year
b. 2 percent a year
c. 3 to 10 percent a year
d. 25 percent a year - correct answer ✔c. 3 to 10 percent a year
, Which of the following lines of insurance is least affected by insurance fraud?
a. health care
b. workers' compensation
c. auto insurance
d. life insurance - correct answer ✔d. life insurance
Which term refers to medical providers billing insurance companies for
treatments not performed?
a. pretext treatments
b. phantom treatments
c. unnecessary treatments
d. gratuitous treatments - correct answer ✔b. phantom treatments
Which term describes the use of false pretenses in order to obtain personal
information?
a. phishing
b. scamming
c. diversion
d. pretexting - correct answer ✔d. pretexting
Which of the following is the best choice to examine a catastrophe insurance
claim suspected of fraud?
a. a claims-handling specialist
verified to pass 2025
A person who pads or adds to a legitimate claim commits which type of
insurance fraud?
a. soft fraud
b. hard fraud
c. internal fraud
d. domestic fraud - correct answer ✔a. soft fraud
Claim mills are organized fraud rings involving:
a. unscrupulous insurance agents
b. dishonest claims handlers
c. medical practitioners and lawyers
d. insurance consumers - correct answer ✔c. medical practitioners and
lawyers
What is the estimated cost of insurance fraud schemes?
a. 1 percent a year
b. 2 percent a year
c. 3 to 10 percent a year
d. 25 percent a year - correct answer ✔c. 3 to 10 percent a year
, Which of the following lines of insurance is least affected by insurance fraud?
a. health care
b. workers' compensation
c. auto insurance
d. life insurance - correct answer ✔d. life insurance
Which term refers to medical providers billing insurance companies for
treatments not performed?
a. pretext treatments
b. phantom treatments
c. unnecessary treatments
d. gratuitous treatments - correct answer ✔b. phantom treatments
Which term describes the use of false pretenses in order to obtain personal
information?
a. phishing
b. scamming
c. diversion
d. pretexting - correct answer ✔d. pretexting
Which of the following is the best choice to examine a catastrophe insurance
claim suspected of fraud?
a. a claims-handling specialist
