ECONOMICS
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following fully describes the definition of fraud?
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The withholding of known facts that are so important that the disclosure of them would change the decision of an insurer to issue the policy
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A warranteed statement on the application that was not true
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The intentional misrepresentation, deceit, or concealment of a material fact known to a person with the intent to gain from the experience
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A false statement on the application
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Explanation:
Detailed explanation-1: -Fraud can be defined as the deliberate and willful representation of false information in order to deceive the other party and make them enter into a contract. Whereas misrepresentation can be defined as an unintentional act of providing false information.
Detailed explanation-2: -Fraudulent misrepresentation is a civil action arising under contract law. It involves a misrepresentation, false statement of fact, and/or omission that causes the victim to enter into a contract and incur damages.
Detailed explanation-3: -Deceit is most commonly seen as the key element of the tort of fraud. Though primarily a common law concept, deceit is sometimes defined by states in either criminal or civil statutes.
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