What are potential consequences of committing insurance fraud?

• A. Loss of clients and reduced commission rates
• B. Legal penalties and damage to professional reputation
• C. Higher premiums for honest policyholders
• D. Mandatory community service requirements

Answer: (B)

Committing insurance fraud can lead to serious legal penalties, which may include fines, restitution, and even imprisonment, depending on the severity of the fraud committed. Additionally, engaging in fraud damages an individual's professional reputation considerably. This damage can result in losing trust from clients, employers, and insurers, making it much more difficult to find future employment or clients in the industry. With a tarnished reputation, the long-term impacts on a career can be profound, often resulting in an inability to work in the insurance field or related sectors again.

While the other options may indicate some potential consequences, they do not encapsulate the severe legal repercussions and lasting reputational harm associated with fraud as accurately as the identified choice.