QuestionAugust 6, 2025

An example of intermediary fraud might be: A customer chooses not to disclose a serious health condition to the agent while answering health questions on a life application. An agent submits an application with fictitious customer information to the company. A policy owner's son calls into the service center and purports to be his father in order make changes to the policy. A customer chooses not disclose that they are a smoker, because they were attempting to obtain preferred rates.

An example of intermediary fraud might be: A customer chooses not to disclose a serious health condition to the agent while answering health questions on a life application. An agent submits an application with fictitious customer information to the company. A policy owner's son calls into the service center and purports to be his father in order make changes to the policy. A customer chooses not disclose that they are a smoker, because they were attempting to obtain preferred rates.
An example of intermediary fraud might be: A customer chooses not to disclose a serious health condition to the agent while answering health questions on a life application. An agent submits an application with fictitious customer information to the company. A policy owner's son calls into the service center and purports to be his father in order make changes to the policy. A customer chooses not disclose that they are a smoker, because they were attempting to obtain preferred rates.

Solution
4.4(162 votes)

Answer

An agent submits an application with fictitious customer information to the company. Explanation 1. Identify the nature of intermediary fraud Intermediary fraud involves deception by an agent or intermediary, not directly by the customer. 2. Analyze each scenario - First scenario: Customer's non-disclosure is direct fraud by the customer. - Second scenario: Agent submits fictitious information, which is intermediary fraud. - Third scenario: Son impersonates father, which is identity fraud, not intermediary. - Fourth scenario: Customer's non-disclosure is direct fraud by the customer.

Explanation

1. Identify the nature of intermediary fraud<br /> Intermediary fraud involves deception by an agent or intermediary, not directly by the customer.<br /><br />2. Analyze each scenario<br /> - First scenario: Customer's non-disclosure is direct fraud by the customer.<br /> - Second scenario: Agent submits fictitious information, which is intermediary fraud.<br /> - Third scenario: Son impersonates father, which is identity fraud, not intermediary.<br /> - Fourth scenario: Customer's non-disclosure is direct fraud by the customer.
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