Health Insurance Mastery Practice Exam

What is the term for circulating false statements about an insurer?

1. Fraud

2. Defamation

3. Slander

4. Breach of contract

The correct answer is: Defamation

The correct term for circulating false statements about an insurer is defamation. Defamation involves making false statements that damage someone's reputation. In the context of an insurer, this could refer to negative assertions made against the company that could mislead the public or harm its business interests. Fraud typically involves deceitful practices intended to manipulate or gain an unfair advantage, often directed towards a financial benefit rather than the dissemination of false information specifically against a party's reputation. Slander refers specifically to oral statements that are false and damaging, which is a type of defamation but does not encompass other forms of defamation, such as written statements (libel). Hence, while slander may apply in certain situations, the broader term of defamation includes both written and spoken false statements. Breach of contract entails failing to fulfill the obligations stipulated in a contract, which is unrelated to the act of spreading false statements about a company or individual. Thus, defamation is the most accurate term for this scenario.