What is considered "insurance fraud"?

Insurance fraud is classified as the act of misrepresentation or deceit employed to secure benefits from an insurance policy under false pretenses. It encompasses various activities, such as exaggerating claims, providing false information on an insurance application, or staging incidents to falsely claim losses. This deceptive behavior is intentional and usually aims to gain financial advantages that the individual would not rightfully obtain.

In contrast, conducting honest assessments of risks, accurately reporting losses, and shopping for various insurance quotes reflect legitimate behaviors within the insurance process. These actions contribute to honest dealings, transparency, and ultimately uphold the integrity of the insurance system. Therefore, the act of misrepresentation is distinctly identifiable as insurance fraud, which is why it stands out as the correct answer.