Which activity does NOT qualify as insurance fraud?

Increasing insurance coverage when a loss is likely does not qualify as insurance fraud because it is a legitimate action available to policyholders. Policyholders have the right to adjust their insurance coverage based on their changing circumstances or perceived risks. This could reflect responsible risk management, where someone might anticipate the need for greater protection if they foresee potential losses due to various factors, such as upcoming travel or significant purchases.

In contrast, the other activities—lighting a candle near window curtains, faking a death, and staging an accident—would involve deceitful intent or behavior designed to mislead the insurance company into paying out a claim that would not otherwise be warranted. Such actions undermine the integrity of the insurance system and are considered fraud.