Which of the following is an example of false advertising in insurance?

Exaggerating dividends in a magazine advertisement qualifies as an example of false advertising in the insurance industry. False advertising occurs when a company presents misleading information that can lead consumers to have unrealistic expectations about a product or service. In this case, exaggerating dividends misrepresents the potential returns an insurance policyholder might receive, creating a false impression of the performance of a product. Such practices can be deceptive, as they may entice customers based on inflated promises that do not accurately reflect the policy's actual benefits.

In contrast, offering a discount for new clients is a common marketing strategy that does not involve misleading claims, while providing clear policy terms increases transparency and trust. Promoting a community service initiative enhances the company's reputation and does not mislead the consumer about insurance products or their benefits.