Question

1. 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

1. 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

1. claim mills are organized fraud rings involving:

a. unscrupulous insurance agents
b. dishonest claims handlers
c. medical practitioners and lawyers
d. insurance consumers

Explanation:

1. Soft fraud involves exaggerating an otherwise valid insurance claim, which matches the description of padding a legitimate claim. Hard fraud is inventing a false claim entirely, internal fraud is from within the insurance company, and domestic fraud is not a standard insurance fraud category.
2. Life insurance has fewer opportunities for frequent, small-scale fraud compared to health, workers' compensation, and auto insurance, as life claims are based on a definitive event (death) with more rigorous verification, making it the least affected.
3. Claim mills are organized schemes where unethical medical practitioners and lawyers collaborate to fabricate or inflate claims, often related to personal injury, to defraud insurance providers.

Answer:

1. a. soft fraud
2. d. life insurance
3. c. medical practitioners and lawyers