Which term encompasses fraud that includes false claims and intentional losses?

• A. Willful fraud
• B. Staged fraud
• C. Hard fraud
• D. Soft fraud

Answer: (C)

This question tests recognizing fraud by intent and falsity. Hard fraud is the term for deliberate acts to create a loss or fabricate a claim to obtain an insurance payout, which includes making up injuries or staging an incident and submitting a false claim. That combination—intentional loss and false claims—falls squarely under hard fraud.

Soft fraud, by contrast, involves exaggerating a legitimate claim rather than creating a false loss from scratch. Staged fraud is a specific form of hard fraud focusing on creating the loss through staging, but the broader category that covers both false claims and intentional losses is hard fraud.