Which of the following is NOT a red flag of fraudulent insurance claims?

• A. A claim is filed soon after inception
• B. Theft claim includes recently purchased expensive property
• C. The insured does not have a history of making insurance claims
• D. A fire loss claim does not include sentimental items

Answer: (C)

Recognizing red flags in fraudulent insurance claims hinges on timing, purchase patterns, and how the loss is described. Filing a claim soon after the policy starts is suspicious because the loss may have occurred before coverage began or the policy could have been obtained specifically to cover a staged event. A theft claim that includes recently purchased expensive property is a telltale sign; newly bought items being claimed as stolen suggests the purchase and the loss were coordinated to obtain payment. In a fire loss, excluding sentimental items from the claim can also raise concern, since sentimental possessions are commonly part of what a household owns and omitting them can indicate underreporting or misrepresentation of the total loss. Not having a history of making insurance claims, however, is not inherently suspicious and can simply reflect a first-time or cautious policyholder; this alone does not indicate fraud.