Question

Elton had three children. As they grew up and became eligible to drive, Elton bought each a car. To avoid paying high premiums for their car insurance, Elton titled each car in his name. He then stated to his insurance company that he and his wife were the primary drivers on the vehicles. When the youngest child totalled “his” car by hitting a large deer, the insurance company paid to replace the car. What could Elton be charged with should his deception be uncovered?

Answer 1

 Should Elton's deception be discovered, he could be charged with Insurance Fraud, for breaking the conditions and the terms of the car insurance contract he agreed upon with the company. The fact that he sought opportunity for profit, by reporting falsely, he broke the Principle of Utmost Good Faith, which requires the complete information from the person getting the insurance.

Answer 2

Answer:

Insurance fraud

Explanation:

Insurance fraud so committed when there is any breach or dubious activities that occurs in the insurance process. In the example above Elton had 3 children and avoided paying high premiums by titling each car as his and also said he and his wife were the drivers of the cars.

This false information led to his last child hitting a deer and the insurance company paying for the car which would never happened if the right information and insurance process were followed.