Which example best illustrates insurance fraud?

The example that best illustrates insurance fraud is a deliberate lie by an insured to the insurer to obtain a lower premium. Insurance fraud involves intentional deception designed to result in unauthorized benefits or advantages. In this scenario, the insured is actively misrepresenting information, which is a clear act of dishonesty aimed at securing a financial benefit (in this case, a lower premium) that they would not otherwise qualify for if the truth were disclosed.

This act not only undermines the integrity of the insurance system but also impacts other policyholders, who ultimately bear the financial burden of fraud through increased premiums. The direct nature of the lie marks this as a straightforward case of fraud, making it the most illustrative example among the options provided.

Other options may involve misleading practices or misrepresentations, but they might not reach the level of deliberate deceit necessary to be categorized as fraud in the context of insurance law. For instance, withholding material information or misrepresenting the nature of a policy could indicate unethical behavior, but they do not necessarily constitute an outright fraudulent act as clearly as providing false information to secure a reduced premium does.