Which of the following actions would be considered illegal under unfair trade practices?

The act of stating that competitors will raise rates without notice falls under the category of unfair trade practices because it involves disseminating false or misleading information about competitors. This kind of statement can manipulate market perceptions and can create unwarranted fear or urgency among consumers, which may lead them to make decisions based on inaccurate information. In a regulated insurance environment, businesses are expected to promote fair competition and transparency in their dealings. Misinforming consumers about competitors’ actions is unethical and can be damaging not only to the competitor’s business but also to the overall integrity of the marketplace.

Offering educational seminars to clients, paying for a policy analysis, and providing complementary refreshments during policy presentations are generally acceptable practices. They can foster good relationships and communication with clients, as long as they are conducted transparently and ethically. The key differentiator here is that spreading misleading or potentially harmful claims about competitors undermines the foundation of fair competition and is, therefore, considered illegal under unfair trade practices.