A Georgia producer hands prospects a flyer stating that a competing insurer 'is insolvent and cannot pay its claims,' which he knows to be false. This conduct constitutes:

Why A is correct

Under O.C.G.A. § 33-6-4(b)(3), defamation is making or circulating a false oral or written statement about the financial condition of a person engaged in the business of insurance, calculated to injure that person. The flyer falsely attacking the competitor's solvency is defamation and grounds for Insurance Commissioner enforcement.

Why the other options are wrong

• B) Coercion under O.C.G.A. § 33-6-4(b)(4) requires boycott, intimidation, or force directed at business decisions; a false flyer is a statement, not a threat.
• C) Churning involves using cash values of existing policies to buy more coverage from the same insurer and is unrelated to attacks on a competitor.
• D) Controlled business concerns insuring the licensee's own interests, not statements about competitors.

Memory hook

Lies about a rival's wallet = defamation; lies about your own policy = misrepresentation.