Question

question 6 of 12
a licensed insurance agent overhears a conversation that leads him to believe a person is committing fraud. if the agent makes a written report to a law enforcement agency and the person is investigated, but it turns out that it was an erroneous accusation, what charge will the agent face?
a. no charges; the insurance code gives the agent legal immunity.
b. a misrepresentation
c. slander
d. libel, a written untruth

Explanation:

In many jurisdictions, the Insurance Code provides legal immunity to licensed insurance agents who make good - faith written reports of suspected fraud to law enforcement. Since the agent made a report in good - faith based on what they overheard, they are protected. Slander is oral false statement, libel is written false statement, and misrepresentation is not applicable here as the agent had a reasonable basis for suspicion at the time of reporting.

Answer:

A. No charges; the Insurance Code gives the agent legal immunity.