Soft fraud can be best described as which of the following?

Soft fraud is characterized by deceptive practices that involve exaggeration or misrepresentation of the circumstances surrounding an insurance claim, rather than planning or fabricating events like hard fraud does. Offering excessive claims for payment is a prime example of soft fraud, as it reflects an attempt to manipulate the insurance system for a greater payout than what is justified.

In this context, the act of inflating claims or providing misleading information about the extent of damages can fit within the category of soft fraud. This can include things like claiming damages that were not incurred or overstating the severity of a loss. It is important to note that soft fraud is more about bending the rules rather than outright breaking them, which aligns closely with the definition provided by the correct answer.

Understanding soft fraud is crucial for insurance adjusters, as they must be able to identify and evaluate claims accurately while remaining vigilant against potential fraudulent activities.