Which of the following is an example of a misrepresentation?

Describing a universal life policy as a security is indeed an example of misrepresentation because it involves presenting information about the policy in a way that is misleading or inaccurate. Universal life policies are life insurance products with an investment component; they are classified and regulated as insurance, not securities. Misrepresenting the nature of the policy could lead potential policyholders to misunderstand the product's characteristics, benefits, and regulations. This misrepresentation can have serious consequences for both the consumer, who may make an investment decision based on flawed information, and the insurer, which may be held accountable for any resultant misunderstandings or financial losses.

In contrast, making malicious statements about an insurer pertains more to defamation than misrepresentation. Returning a portion of a premium to induce purchase raises questions of legality and ethics but does not necessarily qualify as misrepresentation. Failing to affirm or deny coverage within a reasonable time is more about the insurer's response time rather than misleading or false information communicated about the policy itself.