Florida Life and Health Insurance License Practice Test

What is considered defamation in the context of unfair trade practices?

1. Falsifying insurance claims

2. Misleading policy comparisons

3. Making malicious statements about financial condition

4. Ignoring client inquiries

The correct answer is: Making malicious statements about financial condition

Defamation is the act of making false and damaging statements about someone or something. In the context of unfair trade practices, it specifically refers to making malicious statements about someone's financial condition. This can include spreading rumors or false information about a company's finances, which can damage their reputation and potentially harm their business. The other options do not fit the definition of defamation and are therefore incorrect. Falsifying insurance claims and misleading policy comparisons may be considered unethical or fraudulent, but they do not involve making damaging statements about someone's financial condition. Ignoring client inquiries is also not related to defamation.