What is considered a deceptive practice in insurance sales?

Providing false information about coverage is classified as a deceptive practice in insurance sales because it misleads potential policyholders regarding what their insurance policy entails. Accurate and truthful information is essential in the insurance industry to ensure that consumers make informed decisions about their coverage options. Misrepresentation can lead to significant financial repercussions for consumers who believe they have certain protections that are not actually provided by their policy.

In contrast, offering discounts for referrals can be a legitimate marketing strategy that incentivizes existing customers to recommend services. Comparing benefits of different policies is a valid practice as it aids consumers in understanding their options and making choices that best suit their needs. Offering bundled insurance products is a common industry practice designed to provide clients with comprehensive coverage at potentially lower rates, which does not inherently involve deception.