What term is used for a statement that misleads regarding a policy's features, benefits, or coverage?

The term for a statement that misleads regarding a policy's features, benefits, or coverage is misrepresentation. In the context of insurance, misrepresentation occurs when an individual or company provides false or misleading information about the terms of a policy. This can lead to misunderstandings for consumers regarding what they are actually purchasing and can be harmful because it affects their decision-making process. Misrepresentation undermines trust in the insurance industry and can have legal consequences for the party making the misleading statements.

In contrast, coercion refers to pressuring someone to act against their will, which does not specifically pertain to misleading statements about a policy. Rebating involves returning part of a premium to an insured, which is a different issue related to unethical practices in insurance sales rather than misleading information. Defamation involves damaging someone's reputation through false statements, which is also unrelated to the context of insurance policy descriptions. Each of these terms has its own distinct definition, and misrepresentation specifically captures the act of misleading about insurance features.