What is NOT considered a form of insurance fraud?

Increasing coverage prior to a known loss is not considered a form of insurance fraud because, while it may seem suspicious, it falls within the policyholder’s rights to adjust their coverage. This action does not involve deceit in terms of falsifying information or misrepresentation of a claim. The policyholder might believe they need additional coverage for various reasons, such as changes in circumstances or assets.

In contrast, the other options involve deception intended to gain a benefit from the insurance company. Filing a false claim, inflating the value of lost items, and exaggerating injuries post-accident are all clearly fraudulent actions meant to deceive the insurer into paying out more than what is legitimately owed. Thus, increasing coverage prior to a known loss, while potentially ethically questionable, does not fulfill the criteria for fraud as it does not involve the manipulation or fabrication of facts.