Because it was a "fixer$-$upper," Kennith was able to purchase a three$-$bedroom house at a price he could afford. When applying for homeowners insurance, Kennith accurately stated the home's purchase price and even mentioned that he got a good deal on it$,$ but he made sure not to mention the home's extensive water damage because he thought it might be a problem. Concealing this important fact is

$($Search Chapter $2)$

a$.$ a form of misrepresentation.

b$.$ insurance fraud.

c$.$ not fraudulent because Kennith did not receive any money.

d$.$ not fraudulent unless the agent or application asked about prior damage.

No one really knows the extent of insurance fraud because

$($Search Chapter $2)$

a$.$ insurance fraud has not been defined clearly enough to make estimates possible.

b$.$ insurance frauds that are successful are never counted.

c$.$ nobody has attempted to estimate the costs of insurance fraud.

d$.$ estimates vary too widely to have any credibility.

Fraud is best defined as

$($Search Chapter $2)$

a$.$ a lie told to a person who trusts you.

b$.$ a lie told to your insurance company.

c$.$ a lie told for the purpose of obtaining money from another who believes the lie to be true.

d$.$ a profitable and honest business.

Chartered Property Casualty Underwriters $($CPCUs$)$ earn their credentials by meeting an experience requirement, passing a challenging series of exams, and agreeing to be bound by a code of professional conduct. CPCUs are

$($Search Chapter $2)$

a$.$ encouraged to engage in matters beyond the current level of their experience and expertise.

b$.$ prohibited from practicing law unless they have been admitted to the bar or are otherwise qualified.

c$.$ permitted to practice insurance law because of their advanced educational standing.

d$.$ subject to standards that are not appropriate for other insurance professionals.