Which of the following best describes insurance fraud?

Insurance fraud is best described as intentional deception to gain an unfair advantage. This means that an individual knowingly provides false information or misrepresents facts in order to obtain benefits or payments from an insurance policy that they would not otherwise be entitled to. This deceptive behavior can take various forms, such as inflating claims, staging accidents, or providing falsified documents.

In contrast, submitting truthful information to an insurer does not involve any deception, hence it cannot be categorized as fraud. Errors made during the claims process typically refer to honest mistakes or misunderstandings rather than intentional acts of deception, and therefore, do not fit the definition of fraud. A false assumption about a policy's coverage suggests a misunderstanding or lack of information but does not imply that there is any intent to deceive. Thus, these alternatives do not capture the essence of insurance fraud, which fundamentally revolves around the intent to deceive for illegitimate gain.