Life & Health · Chapter 20 · Marketing Practices
Defamation (Unfair Practice)
Definition
Knowingly making, publishing, disseminating, or circulating (or aiding, abetting, or encouraging the same) any oral or written statement, pamphlet, circular, article, or literature that is false or maliciously critical of, or derogatory to, any person and calculated to injure them — classically, false and maliciously critical statements about a competing insurer's financial condition.
In plain English
Trash-talking a competitor with lies — "that carrier's about to go under" — to steal the business.
Exam tip
Target = a competitor (usually its financial condition). Lies about your OWN product are misrepresentation/false advertising instead.
Related terms