New Jersey Casualty Insurance Producer Practice Test 2025 – Complete Exam Preparation

The correct answer is the term that encompasses the act of spreading false rumors about someone, which is defamation. Defamation is a legal concept that involves damaging someone's reputation by making false statements. It includes both written (libel) and spoken (slander) forms of defamation; however, as a broader term, defamation covers all types of false statements that can harm an individual's reputation.

Libel refers specifically to defamation that occurs in a written format, while slander refers to spoken defamatory statements. Both libel and slander fall under the umbrella of defamation but are distinct categories within it. Malpractice, on the other hand, refers to professional negligence or misconduct by a person in the course of providing professional services, and does not pertain to spreading false rumors. Understanding these differences helps in recognizing the specific legal implications of each term related to reputation and false communication.