General Insurance
What must be shown to establish fraud, beyond an untrue statement of material fact?
Answer and explanation
Answer: D. Fraud requires a deliberate falsehood intended to induce the other party to act, and reliance causing harm. An innocent misstatement, however material, is a misrepresentation rather than fraud, whatever its subject or timing.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, fraud
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