CAS Practice Exam 2026 – Complete Study Guide

The choice highlighting the possibility of fraudulent claims via neglect is particularly relevant in this context. When an insured maintains older vehicles despite limited use, it raises concerns over the condition and upkeep of these vehicles. An older vehicle is more likely to experience mechanical failures or issues that could be exploited in a way that might lead to a fraudulent claim. For example, if the insured allows a vehicle to fall into disrepair and then files a claim for damages due to neglect, it could indicate an intent to benefit from an insurance payout that does not align with responsible ownership practices.

In contrast, while the other options involve factors related to older vehicles, they do not directly connect to the concept of risk as strongly as the potential for fraudulent claims does. For example, depreciation is a natural consequence of vehicle aging, ownership disputes are generally less common concerns for vehicles with clear titles, and while parts replacement may be more challenging, it does not inherently imply the kind of risk linked with neglect or fraudulent activity that is highlighted in the selected answer.