Question

If an agent told a client an HMO was a form of insurance and implied that the policy being offered included shares of stock, those actions would be characterized as:

a) Misrepresentation
b) Coercion
c) Defamation
d) Unfair discrimination

Answer 1

The actions of an agent falsely stating that an HMO includes shares of stock would be characterized as misrepresentation, which is the provision of false or misleading information in the context of insurance.

Step-by-step explanation:

If an agent told a client an HMO was a form of insurance and implied that the policy being offered included shares of stock, those actions would be characterized as misrepresentation. Misrepresentation occurs when false or misleading information is presented as fact, potentially causing harm or leading someone to make an incorrect decision based on that misinformation. In the context of insurance, it is crucial that agents accurately convey the details of the policies, including what they cover and the benefits provided to the policyholders.