What is the definition of “insurance fraud” under North Carolina law?

Under North Carolina law, the definition of “insurance fraud” is centered around the act of providing false information or concealing material facts when dealing with an insurance application, claim, or policy. This definition emphasizes the deceptive nature of insurance fraud, which undermines the integrity of the insurance process. By intentionally misrepresenting the truth or hiding important information that an insurer would need to make informed decisions, individuals can manipulate the outcome in their favor, leading to unfair financial gains or losses.

This definition is crucial because it establishes the broad scope of fraudulent activities that can occur in the insurance arena. It goes beyond just the initial application process (as seen in one of the other options) and includes any act of deception that jeopardizes the insurer's ability to evaluate the risk or determine the legitimacy of a claim. Thus, it encapsulates a range of behaviors that compromise the ethical standards of the insurance industry, reinforcing the importance of honesty and transparency in all insurance dealings.