A Georgia producer hands out flyers that falsely state that a competing insurer is financially insolvent and about to collapse. Which unfair trade practice has the producer committed?

Why A is correct

Under O.C.G.A. § 33-6-4(b)(3), defamation consists of making or circulating false or malicious statements about the financial condition or business of an insurer or producer, and the false insolvency flyer fits that definition exactly. Rebating involves premium inducements, twisting induces policy surrenders, and coercion involves forcing action through threats — none of which matches disparaging a competitor's solvency.

Why the other options are wrong

• B) Rebating is giving or accepting premium-related inducements, not making false statements about a competitor's finances. O.C.G.A. § 33-6-4(b)(3).
• C) Twisting is misrepresenting terms to induce a policyholder to lapse, forfeit, or surrender a policy; no surrender is involved here. O.C.G.A. § 33-6-4(b)(2).
• D) Coercion involves forcing or intimidating a party through threats; the flyer is a disparagement, not a threat.

Memory hook

Falsely crying 'insolvent!' about a rival = defamation.