A producer markets an insurance policy by telling prospects it is 'just like owning shares of stock in the company.' Under Tennessee law, what is this?

Why C is correct

T.C.A. § 56-8-104(1) expressly includes misrepresenting an insurance policy as shares of stock or securities within the prohibited misrepresentation and false-advertising practices. An insurance policy confers contractual benefits, not equity ownership, so the stock analogy is a misrepresentation about the product's nature that the statute forbids regardless of how persuasive it sounds.

Why the other options are wrong

• A) The corporate nature of insurers is irrelevant; comparing a policy to stock ownership is a prohibited misrepresentation under T.C.A. § 56-8-104(1).
• B) This is a false-advertising issue governed by the unfair trade practices statute, not a question of fiduciary duty over premium funds.
• D) The condition does not cure the misrepresentation; describing any policy as shares of stock is prohibited under T.C.A. § 56-8-104(1).

Memory hook

A policy is a promise, not a stock certificate — say otherwise and you have misadvertised.