Which of the following constitutes an unfair act in the insurance industry?

Failing to disclose all terms of a policy is considered an unfair act in the insurance industry because transparency is a fundamental principle that underpins trust between insurers and consumers. When an insurer does not fully disclose the terms, conditions, and limitations of a policy, it can lead to misunderstandings and financial harm for the insured. This lack of transparency can prevent consumers from making fully informed decisions, which is a core expectation in any business transaction, particularly one as significant as insurance.

Consumers need to understand what they are purchasing to evaluate whether it meets their needs and to avoid surprises when they need to file a claim. Regulatory bodies enforce strict requirements for disclosure to protect consumers and maintain the integrity of the insurance marketplace. Therefore, failing to disclose all terms undermines these principles and is deemed an unfair practice.