Which of the following is an example of an unfair method of competition?

Overstating the benefits of an insurance policy is considered an unfair method of competition because it involves misleading potential customers about the actual value or terms of the insurance being offered. This kind of deceptive practice can create an unfair advantage over competitors who are presenting their products more honestly. Misrepresentation undermines the trust that consumers need to place in insurance products, which is vital for maintaining a fair marketplace.

In contrast, offering lower premiums, providing discounts for bundling policies, and marketing to underserved populations are practices that can be viewed as competitive strategies. Offering lower premiums may be an effective way to attract customers without misleading them, while discounts for bundling policies incentivize consumers to purchase multiple policies, benefiting both them and the insurance provider. Marketing to underserved populations aims to increase accessibility and provide opportunities to groups that may not have had adequate insurance options, thus promoting competition rather than detracting from it.