Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed?

The scenario described involves an agent providing misleading information to a prospective client by stating that a policy's dividends are guaranteed. This constitutes misrepresentation, which is specifically defined as providing false or misleading information about the terms or benefits of an insurance policy. The key aspect of misrepresentation is that it can lead the client to form expectations that are not aligned with the actual contract terms, thereby potentially influencing their decision to purchase the policy.

In Florida's insurance regulations, misrepresentation is recognized as an unfair trade practice because it undermines the principle of transparency and honesty that is essential in the insurance industry. Agents have a duty to present information accurately and truthfully; failing to do so can jeopardize the trust between the agent and the client, as well as lead to potential legal consequences for the agent.

Other options, while also related to unethical practices, do not specifically address the act of providing inaccurate assurance about guaranteed dividends in the way misrepresentation does. Therefore, identifying this practice as misrepresentation emphasizes the importance of integrity in communications between insurance agents and their clients.