An auto broker tells a prospect that a competitor's company is 'about to go bankrupt' even though there is no public evidence to support that statement. Under California law, this conduct is best described as which prohibited unfair practice?
Explanation
Section 790.03(b) of the Insurance Code prohibits making, publishing, or circulating any false or maliciously critical statement about an insurer that is intended to injure the company. That conduct is defamation of an insurer. Twisting involves misrepresentations made to induce a replacement; rebating is sharing commission with the insured; boycott/intimidation requires concerted action restraining trade.
Law Reference: Cal. Ins. Code §790.03(b)This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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