What is it called when an agent makes exaggerated claims to convince someone to buy insurance?

The situation described, where an agent makes exaggerated claims to persuade someone to purchase insurance, is best identified as misrepresentation. Misrepresentation occurs when false statements or misleading representations are made regarding the benefits or terms of an insurance policy. This term specifically captures the nuances of making exaggerated claims, as it can imply that the agent is providing information that is not entirely truthful or is overstated, which can significantly influence the buyer's decision.

Misrepresentation does not necessarily require intent to deceive, making it distinct from concepts like fraud, which involves deliberate deceit, and coercion, which implies pressure or threats to force someone into a decision. While deceit could also relate to making false statements, it is more about the act of lying itself rather than the manner in which information is conveyed in the context of selling insurance. Therefore, misrepresentation best encompasses the scenario of an agent using exaggerated claims to win over a potential client.