Which of the following is considered a fraudulent insurance act?

The action of diverting money from an insurer is classified as a fraudulent insurance act because it involves intentionally misappropriating funds for personal gain or benefit at the expense of the insurer. This conduct undermines the integrity of the insurance system and constitutes fraud, as it is an illegal act designed to cause loss to the insurance company.

Filing claims for good faith errors does not constitute fraud, as it involves honest mistakes without intent to deceive. Similarly, offering discounts for early payments is a legitimate business practice designed to incentivize timely payment and is not deceptive. Providing genuine policy information also aligns with honest business operations and transparency, further distancing it from any fraudulent behavior.