State RegulationsTX specificDifficulty 3/5
A Texas agent hands out a flyer that quotes a competitor's published premium accurately but leaves out the competitor's waiting period, so the comparison flatters the agent's own policy. Which best describes the violation?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 541.051-.052 and 28 TAC 21.4, misrepresentation includes any statement that is misleading in fact, and a comparison that is technically accurate but omits a material limitation misrepresents the competing policy. Literal accuracy is therefore not a defense. The violation supports discipline under TIC 4005.101-.102. Defamation under TIC 541.053 and boycott, coercion and intimidation under TIC 541.054 are distinct offenses that do not fit these facts.
Why the other options are wrong
- A) Accuracy of individual figures does not save a comparison that is misleading because of what it omits.
- C) Boycott, coercion and intimidation under TIC 541.054 involve threats or coercive pressure, not a comparative flyer.
- D) Defamation under TIC 541.053 targets false statements about the financial condition of an insurer or agent, not an incomplete product comparison.
Memory hook
A true number can still be a misrepresentation when the omission makes the comparison mislead.