Defamation
Publishing or circulating false, derogatory statements about an insurer's or agent's financial condition or business practices to harm them in the market.
Drill all 803 terms as flip-card flashcards in the Exam Engine →
Practice This Concept
Which statement correctly distinguishes contract law from tort law?
Contract law governs enforceable agreements between parties, while tort law governs civil wrongs that injure persons or property — Contract law concerns voluntary agreements in which each party exchanges promises or value, such as an insurance policy. Tort law concerns civil wrongs and injuries committed against persons or their property, such as negligence or defamation, regardless of whether any agreement existed between the parties. Insurance contracts are governed by contract law, while liability insurance exists largely because of tort law, which imposes duties that people owe to others. The two bodies of law protect different interests and operate under different rules and remedies.
National insurance concept
A contract law case arises from a breach of a private agreement, while a tort law case arises from:
A civil wrong that harms another person or their property — Tort law addresses civil wrongs, such as negligence, defamation, and trespass, in which one party's conduct injures another outside the context of any contract. Contract law, by contrast, enforces the promises the parties have voluntarily made to each other. An insurance policy is a contract, so a dispute over policy benefits or premiums is typically a contract matter, while an injury caused by another's careless conduct is a tort matter. Criminal violations are prosecuted by the state rather than pursued as private civil wrongs, and administrative regulation is a regulatory matter rather than a tort.
National insurance concept
Practice all general insurance questions →