A producer tells a client that an admitted insurer's policy contains a 'guaranteed dividend,' when no such dividend is contractually guaranteed. This violates §790.03(a) as:
a.Boycott
b.Misrepresentation in the sale of insurance
c.Unauthorized practice of law
d.Coercion
Explanation
Section 790.03(a) prohibits making, issuing, or circulating any misrepresentation regarding the terms or benefits of any policy. Promising a guaranteed dividend that does not exist is a textbook misrepresentation. Coercion, boycott, and unauthorized practice of law are separate violations.
Law Reference: Cal. Ins. Code §790.03(a)Practice all 215 questions free — no signup required.
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