What can be a direct result of engaging in insurance fraud?

Engaging in insurance fraud can lead to ineligibility for future coverage. This occurs because insurance fraud undermines the integrity of the insurance system, which relies on trust between policyholders and insurers. When an individual commits fraud, they violate the terms of their policy and the law, which can result in their current policy being canceled. Additionally, insurance companies often report fraudulent activities to databases used by underwriters and other insurers when assessing risk for future coverage. This makes it difficult, if not impossible, for the individual to obtain insurance from any reputable company in the future.

In contrast, the other choices do not accurately reflect the consequences of committing insurance fraud. For instance, engaging in fraudulent activities typically does not lead to increased claim approvals or expedited claim payouts, as these actions would likely raise red flags for insurers. Longer waiting periods for service could be an indirect consequence of heightened scrutiny around claims but are not as direct as losing eligibility for future coverage, which is a common and severe consequence faced by those who commit fraud.