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Test your fraud knowledge and learn more.

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Insurance Fraud Quiz - Beginner

Question 1

True or False? Insurance fraud occurs when someone tries to make money from insurance transactions by deceiving others.

True False

True. Lie + Benefit = Insurance Fraud. More Information

Question 2

True or False? If it is based on good faith disagreement between an insurance company and consumer, it is not insurance fraud.

True False

True. If there is a lie (intent to defraud or deceive) in action for the purpose of gaining the benefit, it is insurance fraud. More Information

If you aren't satisfied by the insurer's response, contact Consumer Affairs at (800)721-3272 (In-state only) or (208)334-4319.

Question 3

True or False? It is ok to sign blank insurance applications, if an agent tells you to do so.

True False

False. Never sign blank insurance claim forms or applications. Also, you should receive a copy of your policy from your agent in a reasonable amount of time. Then read your policy immediately to verify that it contains the coverage you discussed with your agent. More Information

Question 4

True or False? If a claimant withdraws a claim, she or he would not be investigated for a fraudulent claim.

True False

False. That is not correct. Withdrawing the claim will not stop the investigation.

Question 5

True or False? Insurance Fraud is a felony in Idaho.

True False

True. Any violator of Idaho Code §41-293 is guilty of a felony. A policyholder exaggerates damages thinking it is a “harmless white lie,” however, it is a crime and a felony in Idaho.

Insurance Fraud Quiz - Intermediate

Question 1

Which of the following is a common perception people have that leads them to commit insurance fraud?

#1 People have relatively low sympathy for insurance companies being victimized by fraud.
#2 People lack a strong sense of outrage over insurance fraud as a crime, and view fraud as a victimless crime.
#3 People commit fraud to get a fair return on the premiums they paid.
All of the above

All of the above, according to the research done by the Coalition Against Insurance Fraud.

Question 2

True or False? An agent convinces a policyholder to cash out an already existing policy and purchase a new one, even though it may not be in their best interest. That is called Churning.

True False

True. Usually consumers have been victimized as they often subjected to surrender fees and/or a loss of investment (NAIC)

Question 3

True or False? Insurance fraud is the second largest economic crime in America after income tax evasion.

True False

True. Nearly $80 billion in fraudulent claims are made annually in the U.S., the Coalition Against Insurance Fraud estimates. This figure includes all lines of insurance. It’s also a conservative figure because much insurance fraud goes undetected and unreported (CAIF).

Question 4

True or False? Fraud is often one of the major contributory factors to rising insurance prices.

True False

True. Besides rising insurance prices, insurance fraud impacts everyone: innocent people lose their entire life savings, jobs, businesses, houses, families, even their lives by insurance fraud crimes. More information at CAIF.

Question 5

True or False? It is ok for agents to offer a return a portion of premiums, or their commission to a potential or an existing customer in order to persuade an individual to do business with them.

True False

False. That is called Rebating and is prohibited in Idaho per Idaho Code §41-1314. However, this section does not prohibit an agent from offerring any prizes, goods, wares, merchandise, articles or property of an aggregate value not to exceed two hundred dollars ($200) in a calendar year.

Insurance Fraud Quiz - Advanced

Question 1

True or False? An Idaho licensed agent can sell a policy approved in Idaho to a consumer lives in Spokane, Washington even if the policy is not approved in Washington.

True False

False. An agent must be licensed in another state to sell a policy to a resident in that state and a policy must be approved or filed in that state.

Question 2

How much does Insurance Fraud (non-health insurance) cost the average U.S. family per year in the form of increased premiums?

$30 ~ $60
$100 ~ $250
$400 ~ $700

$400 ~ $700. According to the FBI, the total cost of insurance fraud (non-health insurance) is estimated to be more than $40 billion per year. That means Insurance Fraud costs the average U.S. family between $400 and $700 per year in the form of increased premiums.

Question 3

Which of the following actions could help a consumer prevent health insurance fraud?

#1 Review your explanation of benefits your insurance company sent to you. Your doctor or Insurer may make a mistake.
#2 Ask the doctor why such tests or procedures are necessary.
#3 Ask questions until you understand they are appropriate and necessary for you.
All of the above

All of the above.

Question 4

True or False? Insisting on reporting to the police at the accident could protect yourself from insurance fraud.

True False

True. Also, make sure to get the information of the other driver. Take pictures of your vehicles’ damage. Ask any witness’s name and phone number, if possible. Be careful if somebody call you about “free” chiropractic treatment. It may not be “free” depending on your insurance policy. More Information

Question 5

True or False? The insurers and producers must make “reasonable efforts” to obtain the consumer’s “suitability information” prior to recommending a particular annuity to the consumer.

True False

True. The purpose of Idaho Rule 18.01.09 is to prevent unsuitable sales to consumers. Agents who fail to comply with the suitability rules may face administrative action.

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