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What is a "kickback" in the context of insurance fraud?

Payment for legitimate claims

Reward for facilitating fraudulent referrals

A "kickback" in the context of insurance fraud refers to a reward given to individuals, such as agents or brokers, for facilitating fraudulent referrals or actions that benefit one party at the expense of another, often the insurance company. This can involve agreements where someone receives a payment to steer business toward a particular provider, irrespective of the legitimacy of the claims or services provided. Such practices undermine the integrity of the insurance system and can lead to significant financial losses for insurers and higher premiums for policyholders.

The other options do not accurately define what a kickback is within the realm of fraud. Payments for legitimate claims, bonuses for legitimate agents, or compensation for risk assessments are all actions that occur within ethical and lawful boundaries of insurance practices and do not involve the corrupt, deceitful nature associated with kickbacks.

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Bonus for legitimate insurance agents

Compensation for risk assessments

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