State RegulationsFL specificDifficulty 2/5
At a community event, a Florida agent tells prospects that a competing insurer 'is on the verge of insolvency and drags out paying claims for years.' Both statements are false. This is
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Fla. Stat. 626.9541 (Chapter 626, Florida Statutes), defamation consists of making false statements about the financial condition or business practices of another insurer or agent with intent to injure. Falsely claiming a competitor is near insolvency and slow to pay claims is classic insurance defamation, exposing the agent to DFS penalties for unfair competition.
Why the other options are wrong
- A) Twisting requires misrepresentation about the policy being sold to induce replacement of an existing policy; these statements attack a competitor instead.
- C) Unfair discrimination concerns treating insureds or applicants of the same risk class differently, not disparaging competitors.
- D) False attacks on a competitor's solvency and claims practices are unlawful defamation, not comparative selling.
Memory hook
False rumors about a rival = defamation.