State RegulationsTN specificDifficulty 1/5
Under Tennessee insurance law, which practice constitutes defamation?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
T.C.A. § 56-8-104(3) defines defamation as making, publishing or disseminating false and malicious statements about the financial condition of an insurer or about the business of a person engaged in the insurance business, calculated to injure the insurer or person. The elements are falsity, malice, and injury — which is why ordinary competition, nonrenewal decisions, and truthful regulatory complaints do not qualify.
Why the other options are wrong
- A) Nonrenewal of an appointment is a business decision unrelated to false statements and involves no dissemination of falsehood.
- B) Price competition is lawful market conduct; defamation requires a false and malicious statement, not a lower quote.
- C) An accurate complaint is by definition not false, so it cannot constitute defamation under T.C.A. § 56-8-104(3).
Memory hook
False, malicious, aimed at the wallet — that trio makes it defamation.