Final answer:
An agent making intentionally false statements in insurance transactions may commit insurance fraud. These statements must be made with actual malice for a public official to seek damages under constitutional guarantees.
Step-by-step explanation:
An agent who intentionally makes an untrue or incomplete statement in the course of an insurance transaction may be guilty of insurance fraud. The constitutional guarantees set a federal rule that precludes a public official from recovering damages for a defamatory falsehood related to his official conduct, unless he can demonstrate that the statement was made with actual malice. Actual malice means the statement was made with knowledge that it was false or with reckless disregard for its truth or falsity.