Which of the following is an example of defamation?

Defamation occurs when false statements are made about an individual or entity that harm their reputation. In the context of the scenario provided, using derogatory statements about an insurance company's financial condition fits this definition because it involves making assertions about the company's status that could damage its reputation within the industry or to potential customers. For defamation to be actionable, the statement must be false, presented as a fact, and cause harm to the subject’s reputation.

The other scenarios, while potentially unethical or misleading, do not constitute defamation in the same way. Making an incorrect claim about a competitor's product may be misleading or harmful to the competitor, but it must meet specific criteria to qualify as defamation, such as being publicly disseminated and believed to impact the company's reputation. Misrepresentation of a policy's benefits relates more to issues of consumer protection and fraud than to defamation itself, since it involves a contractual relationship rather than harm to reputation through false statements. Falsifying personal information on an application pertains to integrity and honesty in applications without directly attacking someone's reputation or asserting false claims about them, thus it does not classify as defamation.