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 by a licensed insurance producer
d.Coercion of an applicant into purchasing an unwanted policy
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)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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