State RegulationsMA specificDifficulty 1/5
Which conduct constitutes the unfair practice of defamation under M.G.L. c. 176D, § 3(3)?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.G.L. c. 176D, § 3(3) defines the unfair practice of defamation as circulating oral or written statements that are maliciously critical of or derogatory to an insurer's financial condition and calculated to injure the insurer. Massachusetts protects competitors from false, damaging attacks on their solvency or claim-paying ability, and the Massachusetts Division of Insurance disciplines licensees who engage in the practice. The defining elements are malice, focus on financial condition, and intent to injure.
Why the other options are wrong
- A) Knowingly filing false financial statements is the unfair practice at M.G.L. c. 176D, § 3(5), directed at the regulator, not at a competitor's reputation.
- B) Misleading benefit advertising is false advertising under M.G.L. c. 176D, § 3(2), which targets consumer-directed statements.
- D) Unequal rates for individuals of the same class is unfair discrimination under M.G.L. c. 176D, § 3(7), not defamation.
Memory hook
Defamation = malicious, false, and aimed at a competitor's wallet — solvency smears.