State RegulationsCO specificDifficulty 2/5
A Denver producer circulates flyers falsely stating that a competing insurer is financially insolvent, hoping to win the competitor's agents and clients. Under C.R.S. § 10-3-1104(1)(c), this conduct is:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
C.R.S. § 10-3-1104(1)(c) prohibits false or maliciously critical statements about the financial condition of another insurer that are calculated to injure. Circulating flyers falsely declaring a competitor insolvent, in order to damage it and take its business, fits the defamation definition and is an unfair method of competition in Colorado.
Why the other options are wrong
- A) Coercion involves boycott, intimidation, or force, not false statements about a competitor's solvency.
- C) Rebating is returning premiums or giving unlawful inducements to policy purchasers, not attacking a competitor.
- D) Twisting is misrepresenting a policy to induce lapse or replacement, which this fact pattern does not involve.
Memory hook
Lies about a rival's wallet = defamation.