An agent who tells claimants that their rights may be impaired if they fail to complete a release form could be guilty of what?

• A. Fraud
• B. Unethical conduct
• C. False advertising
• D. Coercion

Answer: (D)

Coercion. Using a threat that a claimant’s rights may be impaired if they don’t sign a release is pressuring someone to act against their will, which is improper in insurance practice. Releases must be voluntary and informed, without intimidation. Fraud would involve misrepresenting facts to deceive, false advertising relates to misleading ads, and while coercive conduct can be unethical, the specific action described is best described as coercion because it relies on threatening consequences to force a signing.