Property and Casualty Insurance Practice Exam

What is the definition of forgery in the context of insurance?

1. Signing the name of another with the intent to deceive

2. Creating fake documents for personal gain

3. Altering official documents without permission

4. Counterfeiting money or assets

The correct answer is: Signing the name of another with the intent to deceive

In the context of insurance, forgery specifically refers to the act of signing the name of another individual with the intent to deceive. This definition encapsulates the notion that forgery involves a deliberate attempt to mislead or defraud, which is a crucial aspect when discussing insurance applications, claims, or policy alterations. Insurance companies often face risks associated with forgery as it can lead to significant financial losses, including fraudulent claims or the issuance of policies based on false information. The intent to deceive is a key element because it distinguishes forgery from other potential actions that might involve signing or altering documents. Other options, while they may involve deceptive practices, do not align precisely with the legal definition of forgery as it pertains to insurance. For example, creating fake documents or counterfeiting involve different legal implications and are broader in scope. Forgery is specifically about the unauthorized signing of someone else's name with the goal of deception. In this context, understanding the precise definition of forgery helps insurance professionals regularly identify and mitigate risks associated with fraudulent activities.