What is meant by "insurance fraud"?

Insurance fraud refers to the act of deliberately deceiving an insurance company in order to gain benefits for which one is not entitled. This can involve a variety of actions, such as submitting false claims, exaggerating the scope of a loss, or providing misleading information to obtain a policy. The key aspect of insurance fraud is the intent to mislead or deceive the insurer to secure financial gain that is not rightfully owed.

In this context, the option that accurately defines insurance fraud involves "intentionally misleading an insurer to receive undeserved benefits." This captures the essence of what constitutes fraud in the insurance industry, emphasizing both the intention behind the act and the outcome of receiving benefits that one has not legitimately earned.

The other options do not align with the definition of insurance fraud. Misunderstanding policy terms relates more to confusion over how coverage works rather than an intentional deception. Failing to report a claim can be a failure to act rather than a deliberate attempt to defraud. Providing inaccurate personal information might involve dishonesty, but without the specific intent to deceive the insurer for financial gain, it does not meet the criteria for fraud.