Question

Haley takes a bottle of water into a store, pours some of it on the floor when no one is looking, and then pretends to slip and fall. She cries out for help in apparent pain until someone comes to her aid. She then sues the store for her fake injury in an effort to collect an insurance settlement. What has Haley committed?

Answer 1

Haley has committed insurance fraud, specifically staging an accident. She rationalizes this by using the 'Denial of Injury,' but her actions are both illegal and unethical, contributing to broader societal costs such as increased insurance premiums.

Step-by-step explanation:

Haley has committed a form of fraud known as a staged accident or insurance fraud. By deliberately creating a hazardous situation, pretending to be injured, and then suing for damages while knowing that no real injury occurred, she is attempting to deceive the store and its insurance company for a financial gain. This act would be considered illegal and unethical. Such actions fall under the category of white-collar crime, which are non-violent, financially motivated crimes typically committed by business and government professionals.

The justification that "nobody got hurt" and "insurance will take care of it" represents a rationalization known as the Denial of Injury. This technique is used to downplay the seriousness of the fraudulent act by suggesting there's no real victim since the insurance will cover the costs. However, insurance fraud affects everyone by contributing to higher insurance premiums and potentially harming businesses financially and reputationally.