Brown insured his automobile against theft under a policy of insurance.Shortly after he had insured the vehicle,he found himself short of cash,and offered to sell the vehicle to his friend for $500 if his friend would dismantle it for parts.Brown did not tell his friend that he intended to claim that the car had been stolen.His friend bought the car for $500,and dismantled it.
-If the loss is paid by the insurer,and the insurer later becomes aware of the fraud,the insurer may recover the money paid to Brown.

Question

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Brown committed insurance fraud by selling his vehicle to his friend and planning to falsely claim that it was stolen. If the insurer becomes aware of the fraud, they have the right to recover the money paid to Brown.

Brown Insured His Automobile Against Theft Under a Policy of Insurance.Shortly