What is it called when a producer convinces a prospective insured to buy an insurance policy based on exaggerations?

The situation described involves a producer persuading a potential insured to purchase an insurance policy by using exaggerations. This falls under the category of misrepresentation. Misrepresentation occurs when false statements or misleading impressions are provided to an individual regarding the terms or conditions of an insurance policy. In this context, the producer is not just sharing accurate information but is embellishing or altering facts to make the policy appear more beneficial or necessary than it truly is. This can lead to the insured making a purchase based on inaccurate information, which undermines the integrity of the insurance transaction.

Deceptive advertising typically involves misleading promotional material rather than personal interactions, while fraudulent activity would imply a more serious and intentional scheme of deceit, which may go beyond simple exaggeration. Coercion implies strong-arming or pressure tactics, which differs from merely exaggerating benefits. Therefore, the correct term that accurately describes the act of convincing someone to buy based on exaggerations is misrepresentation.