A Denver insurer tells its appointed producers that their appointments will be terminated unless they agree not to place business with a competing insurer. Under C.R.S. § 10-3-1104(1)(d), this is an example of:

Why B is correct

C.R.S. § 10-3-1104(1)(d) prohibits boycott, coercion, and intimidation in the insurance business. Threatening to terminate appointments unless producers refuse to place business with a competitor coerces the producers' independent judgment and is an unfair method of competition the Colorado Commissioner of Insurance can penalize.

Why the other options are wrong

• A) Rebating involves returning premiums or giving unlawful inducements to purchasers, not threatening producers.
• C) Controlled business concerns a producer writing policies on his or her own interests, not coercion of producers.
• D) Defamation is false or maliciously critical statements about a competitor's financial condition, not threats against producers.

Memory hook

Coercion = forcing producers' hands with threats.