An insured inflates a genuine $2,000 physical damage claim to $9,000 with invented repairs. Under the general provisions of the policy:

Giải thích

The fraud provision states that coverage is not provided to any insured who has made fraudulent statements or engaged in fraudulent conduct in connection with an accident or loss for which coverage is sought. The consequence falls on the whole claim rather than on the padded part alone, so paying the honest portion understates what the provision does. The policy carries no scheduled fraud penalty.