Arkansas Insurance Adjuster Practice Exam

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Prepare for the Arkansas Insurance Adjuster Exam with flashcards and multiple choice questions, each offering hints and explanations. Equip yourself for your test confidently!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

When someone exaggerates their injuries from a minor car accident to receive more from an insurance claim, they are guilty of:

Creating a morale hazard
Creating a physical hazard
Committing hard fraud
Committing soft fraud

The correct answer is: Committing soft fraud

Exaggerating injuries from a minor car accident for the purpose of receiving more money from an insurance claim is an example of soft fraud. This is because soft fraud refers to dishonest actions that may not cause any harm or serious loss, but are still considered fraudulent. In this scenario, the individual may be exaggerating their injuries in order to receive more compensation, which is dishonest and can lead to increased insurance costs for everyone. Options A and B are incorrect as they refer to creating a hazard, which is not applicable in this scenario. Option C is incorrect because hard fraud refers to more serious and deliberate acts, such as faking an accident, and does not apply here.