State RegulationsGA specificDifficulty 1/5
Under Georgia's unfair trade practices law, defamation in insurance consists of:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
O.C.G.A. § 33-6-4(b)(3) defines defamation as making, publishing, or circulating false or malicious statements about a competitor or its business that disparage the competitor's financial condition or business methods. The provision protects competitors from bad-faith attacks on their solvency and reputation, and the Insurance Commissioner may act against insurers and producers who circulate such material in the marketplace.
Why the other options are wrong
- A) Slow responses to policyholder communications are an unfair claims settlement concern, not defamation.
- C) Exaggerating one's own policy's benefits is misrepresentation under § 33-6-4(b)(2), which targets statements about the product being sold.
- D) Disclosing protected health information raises privacy concerns outside the defamation definition, which centers on disparaging competitors.
Memory hook
Defamation = lying about the other guy's wallet.