Arkansas Insurance Adjuster Practice Exam

Which of the following people committed soft fraud?

1. Ian, who creates fake claims at his job

2. Farah, who burned down her house for insurance

3. Taariq, who caused a car accident for insurance

4. Rafael, who exaggerated injuries for a higher settlement

The correct answer is: Rafael, who exaggerated injuries for a higher settlement

Soft fraud is a type of insurance fraud that involves exaggerating or fabricating a legitimate claim in order to receive a higher payout. The other options, while all forms of insurance fraud, do not fall under the category of soft fraud. Option A involves creating completely fake claims, which is considered hard fraud. Option B involves property fraud, as burning down one's house is a form of property damage. Option C involves causing a car accident, which falls under the category of hard fraud. However, soft fraud is considered a lesser offense compared to hard fraud, as it usually involves less serious acts of deception.