A burglar enters Marcia's home and steals $10,000 worth of appliances. Marcia tells the insurance company that the appliances were worth $20,000. This overstatement of the loss is an example of:

Question

Quizplus · Accepted Answer

Marcia's overstatement of the value of the stolen appliances to the insurance company is considered insurance fraud. This is because she misrepresented the true value of the loss in an attempt to receive a higher payout than she was entitled to. Insurance fraud is a serious offense and can result in legal consequences.

A Burglar Enters Marcia's Home and Steals $10,000 Worth of Appliances