A Georgia producer circulates a written statement he knows to be false, maliciously criticizing the financial condition of a competing insurer. This is an example of:

Why C is correct

Under O.C.G.A. § 33-6-4(b)(3), defamation in insurance trade practices means making or circulating a false or maliciously critical statement about a competitor calculated to injure the competitor — classic targets being its financial condition or business methods. A knowingly false written attack on a rival insurer's solvency fits the definition exactly and exposes both the producer and the market to regulatory discipline.

Why the other options are wrong

• A) Twisting involves misrepresenting policy terms to induce a policyholder to lapse, forfeit, or surrender existing coverage — it says nothing about attacking a competitor's finances.
• B) Rebating concerns returning premiums or other valuable consideration as an inducement to buy; a false written attack on a rival involves no rebate at all.
• D) Coercion means compelling someone to act through threats or pressure; the producer's conduct here is spreading false statements, not threatening anyone.

Memory hook

False and malicious about a rival's wallet — that is defamation.