According to the federal fraud and false statement act, which of these is considered to be an intentional violation?

Prepare for the Vermont Life and Health Exam. Use flashcards and multiple-choice questions with detailed explanations to ensure full preparedness. Get confident with your exam!

The intentional violation under the federal fraud and false statement act encompasses any action that deliberately aims to mislead or deceive. Making false entries in a company's books fits this definition perfectly, as it involves directly altering records with the intent to misrepresent the company's financial status or operations. This act is designed to provide a clearer picture of financial integrity, and thus, such deceptive practices are treated very seriously.

In contrast, failing to report income could stem from ignorance or oversight rather than a deliberate attempt to defraud. Misrepresenting a policy's terms might also not clearly fall under the federal act unless there is evident intent to deceive. Neglecting to renew a license generally involves a failure to meet a regulatory requirement rather than an intentional act of fraud. Therefore, making false entries distinctly aligns with the deliberate falsification that the act aims to penalize.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy