What is the formal process of denying claims through misleading information called?

The formal process of denying claims through misleading information is known as misrepresentation. This term refers to the act of providing false or inaccurate information about a policy, coverage, or claim, which ultimately misleads the policyholder or claimant. Misrepresentation can occur in many contexts, such as during the sale of an insurance policy, when processing claims, or in the underwriting process. It is deemed unethical and can result in significant legal repercussions, including penalties for the insurer or the individual responsible for the misrepresentation.

Each of the other options represents a different context. Coercion pertains to forcing someone to act against their will, often through threats or pressure. Intimidation refers to instilling fear in order to influence someone’s actions. Deception involves misleading someone about a situation but does not specifically relate to the formal denial of claims in the context of insurance. Misrepresentation is the most accurate term in this context, as it specifically addresses the aspect of providing inaccurate information leading to claim denial.