State RegulationsCO specificDifficulty 1/5
A producer circulates a false and maliciously critical statement about a competing insurer's financial condition, calculated to injure the competitor. This conduct is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. § 10-3-1104(1)(c) defines defamation as making or circulating false or maliciously critical statements about the financial condition of an insurer, calculated to injure a person or entity. Spreading such a statement in Colorado is an unfair method of competition enforceable by the Commissioner of Insurance.
Why the other options are wrong
- B) Misrepresentation concerns false statements about the producer's own policy benefits or terms, not attacks on a competitor's finances.
- C) Coercion of debtors concerns loan-condition insurance practices under C.R.S. § 10-3-1105, not competitive disparagement.
- D) Rebating involves returning premium or value to induce sales; nothing was given to any applicant here.
Memory hook
False words about a rival's wallet equal defamation.