A vehicle exists, actually belongs to the insured, and is actually stolen. How does fraud occur in this type of situation?
A. The vehicle that exists is not the vehicle that is on the insurance policy.
B. The fraud occurs when the insured makes a false claim concerning the physical or mechanical condition of the vehicle when it was stolen.
C. The fraud occurs when the owner initially purchased the vehicle and insured it for more than it was worth.
D. None of the answers is correct.
Answer: B
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