A false statement intended to injure someone in insurance is which term?

A false statement intended to injure someone in insurance is which term?

• A. Defamation
• B. Fraud
• C. Negligence
• D. Libel

Answer: (A)

Defamation is a false statement about someone that harms their reputation and is communicated to others. In the insurance context, making a false claim or misrepresentation about a person intended to injure their standing fits defamation because the harm comes from an untruth presented as fact. Libel is the written form of defamation, while slander is spoken defamation; since the scenario doesn’t specify a medium, the broad term defamation covers it best. Fraud involves intentional deception for financial gain, not just harming reputation, and negligence is a failure to act with reasonable care, not a deliberate false statement.

Defamation is a false statement about someone that harms their reputation and is communicated to others. In the insurance context, making a false claim or misrepresentation about a person intended to injure their standing fits defamation because the harm comes from an untruth presented as fact. Libel is the written form of defamation, while slander is spoken defamation; since the scenario doesn’t specify a medium, the broad term defamation covers it best. Fraud involves intentional deception for financial gain, not just harming reputation, and negligence is a failure to act with reasonable care, not a deliberate false statement.