Which of the following practices is considered a form of coercion within the insurance industry?

The correct answer highlights a serious ethical breach in the insurance industry. Coercion involves intimidating or forcing someone to act against their will, and in the context of insurance, it manifests when an insurance agent or company uses threats to influence a policyholder's decisions. By threatening to deny claims unless certain forms are signed, the agent is exerting undue pressure on the client, undermining the client's ability to make informed choices about their coverage and claim process. This type of behavior goes against the principles of fair practice and can lead to significant consequences for both the insurer and the insured.

In contrast, the other options describe practices that are generally viewed as acceptable and beneficial within the industry. Offering discounts encourages clients to maintain their policies or seek new coverage, providing thorough information ensures clients understand the products they are purchasing, and recommending multiple policy options allows clients the flexibility to choose coverage that best meets their needs. None of these actions involve manipulation or fear, which is why they do not constitute coercion.