Arkansas Insurance Adjuster Practice Exam 2025 - Free Insurance Adjuster Practice Questions and Study Guide

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Question: 1 / 255

When Louise goes online and fills out phony applications with XYZ Auto Insurance to sell temporary insurance cards on the black market, she is:

committing hard fraud

Louise is committing hard fraud because she is intentionally deceiving the insurance company by providing false information in order to make a profit on the black market. Option B is incorrect because using a regular business practice involves legitimate sales and transactions. Option C is incorrect because soft fraud refers to exaggerating or falsifying information on a legitimate insurance claim. Option D is incorrect because a Ponzi Scheme is a type of investment fraud, not insurance fraud.

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using a regular business practice

committing soft fraud

using a Ponzi Scheme

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