Which of the following is considered to be misrepresentation?

An agent guaranteeing a policy's dividends constitutes misrepresentation because it reflects an unqualified assertion that may not hold true. Dividends from insurance policies, especially those that are dependent on the performance of the insurer's investment portfolio or other financial factors, cannot be guaranteed. By providing such a guarantee, the agent is implying a certainty about the future performance of the policy that is inherently uncertain, misleading the customer and violating standards of truthful communication in insurance practice.

In contrast, stating that a policy is fully paid could be a matter of interpretation, but it may not inherently involve a false statement unless the payment status is misrepresented. Explaining terms in simple language and providing full disclosure of policy terms are both considered best practices in the insurance industry, promoting transparency and understanding for clients rather than leading them astray. These actions aid in ensuring that clients have a clear grasp of the insurance products they are purchasing.