A property and casualty broker tells a prospect that a competing insurer is on the verge of insolvency, knowing the statement is false. Under the Unfair Insurance Practices Act, this conduct is best described as:
Explanation
Section 790.03(b) prohibits making, publishing, or circulating any false, maliciously critical, or derogatory statement calculated to injure any person engaged in the business of insurance. Lying about a competitor's financial condition is the classic example of defamation of an insurer. Twisting involves misrepresentations to induce a policy replacement, boycott involves coercive agreements not to deal, and rebating involves giving improper inducements to the insured.
Law Reference: Cal. Ins. Code §790.03(b)This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
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