CFE – Financial Transactions and Fraud Schemes — Question 68

After a strong thunderstorm during the night, Ron awakes to find his car covered with hail damage. Ron does not have full insurance coverage on his car, so he contacts his agent to increase his coverage. Three weeks after his new coverage is in effect, another thunderstorm moves through. Ron then files a claim for the hail damage from the first storm, but he claims the damage occurred during the second storm. Ron has committed a fraudulent act known as _____.

Answer options

Correct answer: B

Explanation

The correct answer is 'Double dipping' because Ron is attempting to claim damages for an event that occurred before his insurance coverage was active, effectively seeking compensation from two different time periods. The other options do not accurately describe the act of claiming for past damages after acquiring new coverage.