Meaning of misrepresentation under Maryland insurance law.
Maryland Insurance Article Title 27 prohibits any false, misleading, or deceptive statements made in the sale of insurance.
Misrepresentation includes failing to clearly disclose the true nature, benefits, or limitations of a policy.
Apply the facts of the question.
The producer either misleads or fails to disclose what the policy truly is.
This directly matches the definition of misrepresentation.
Why the other options are incorrect.
Defamation involves false statements harming another insurer’s reputation, not misleading a consumer.
Unfair discrimination involves treating insureds differently without actuarial justification.
Coercion involves forcing a person to purchase insurance under threat or pressure.
Conclusion.
Failing to disclose the true nature of a policy is a classic example of misrepresentation under Maryland law.
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