Deliberately omitting or misstating information for personal benefit is considered to be:

Deliberately omitting or misstating information for personal benefit is characterized as fraud. This is because fraud involves intentional deceit with the purpose of gaining something of value, whether that's financial gain or other advantages. In the context of insurance, fraud can arise during the application process or when making claims, where an individual might provide false information or withhold key details to secure a policy, lower premiums, or obtain benefits that they are not entitled to.

While misrepresentation may seem similar, it typically refers to an incorrect representation that might or might not be intentional. Negligence refers to a failure to act with the care that a reasonable person would, leading to harm or loss, rather than an intentional act of deception. Exaggeration involves overstating facts, but it does not necessarily imply intent to deceive for personal gain, which is the crux of fraudulent behavior. Thus, fraud accurately captures the deliberate nature and intent behind such actions.