A producer falsely tells a policyholder that her current life policy is failing financially, to induce her to let it lapse and buy a new policy from him. Under Tennessee false-advertising law (T.C.A. § 56-8-104), this conduct is:

Why B is correct

T.C.A. § 56-8-104(1) includes, among prohibited misrepresentations and false advertising, any misrepresentation to induce or tend to induce the lapse, forfeiture, exchange, conversion or surrender of a policy. Falsely painting a sound policy as failing to drive a replacement sale is precisely the conduct the statute targets — often called twisting — and the policyholder's signature does not sanitize it.

Why the other options are wrong

• A) Selling one's own product through false statements about a competitor's policy is not lawful competition; T.C.A. § 56-8-104(1) prohibits the misrepresentation itself.
• C) A signature does not immunize induced misrepresentation; the statute reaches the inducement regardless of the applicant's consent.
• D) This is squarely an unfair trade practice under T.C.A. § 56-8-104(1), not merely a fiduciary matter.

Memory hook

Scare them into surrender — that is twisting, and the statute names it.