What is the definition of 'unfair or deceptive act or practice' in the context of insurance?

The definition of 'unfair or deceptive act or practice' in the context of insurance primarily refers to any behavior that misrepresents facts or fails to act promptly regarding claims. This includes actions that could mislead consumers or deny them timely assistance when filing a claim, which can undermine trust in the insurance system and harm policyholders. Misrepresentation, in particular, can take many forms, such as providing false information about coverage, benefits, or the claims process, all of which can lead to financial losses or unmet expectations for consumers.

The other options do not accurately capture the essence of what constitutes an unfair or deceptive practice within insurance. For example, offering low premiums does not inherently qualify as unfair or deceptive; it can be a legitimate marketing strategy if other aspects of the insurance offering are transparent and ethical. Public outreach efforts, regardless of their nature, do not fall under this definition as they typically aim at educating or informing consumers rather than deceiving them. Selling insurance without a license is indeed an unlawful act, but it relates more to regulatory compliance than to the specific definition of 'unfair or deceptive acts.' Thus, the definition focuses on practices that directly mislead or fail to protect the interests of policyholders.