What constitutes misrepresentation in insurance?

Misrepresentation in insurance refers to the act of providing information that is intentionally false or incomplete regarding insurance policies. This can occur when an insurance agent exaggerates or distorts terms, conditions, or coverage to induce a customer to purchase a policy. The essence of misrepresentation lies in the intention to deceive or mislead the consumer, thereby compromising the integrity of the information provided.

In this context, comparing policies accurately (like in option A) is considered a good practice and is essential for helping clients make informed choices. Sharing commission with customers legally (like in option C) is also a legitimate and ethical practice in the insurance industry when done transparently and following the applicable regulations. Lastly, providing guidance on policy terms (as mentioned in option D) is an important part of an insurance agent's role, helping ensure that customers understand the coverage they are purchasing. These actions are fundamentally different from misrepresentation, which carries legal consequences and undermines trust in the insurance process.