What is the term for when an insurance company provides misleading information about its policy provisions?

The correct term for when an insurance company provides misleading information about its policy provisions is known as misrepresentation. Misrepresentation occurs when an insurance provider provides false or misleading information that can influence the decisions of potential policyholders. This might include exaggerating the benefits of a policy, downplaying risks, or omitting crucial information.

False advertising, while similar, specifically refers to misleading information presented in an advertising context rather than in the specifics of policy provisions. Deceptive practices encompass a broader range of misleading actions, which can include both misrepresentation and false advertising, but does not pinpoint the action of providing incorrect details regarding policy terms specifically. Fraud typically involves a more deliberate and deceitful intent to secure an unfair advantage, including criminal intent, which is not always present in cases of misrepresentation. Therefore, misrepresentation most accurately defines the situation described in the question regarding misleading information about policy provisions.