Which of the following best defines defamation in the context of insurance?

Defamation in the context of insurance refers to making false statements about another party that can harm their reputation. Slandering competition specifically involves making unfounded remarks about competitors' products or services, which can mislead consumers and harm the competitor's business. This act can be detrimental not only to the individual or entity being defamed but also to the integrity of the insurance market as a whole, as it erodes trust and professionalism among providers.

The other options do not accurately capture the essence of defamation. Sharing confidential client information is a breach of privacy and trust, rather than a defamatory act. Making false claims about a policy refers to misrepresentation but doesn’t directly address the issue of damaging another's reputation. Filing a frivolous claim relates to the claims process and does not pertain to the concept of defamation itself, which is focused on the communication of potentially damaging falsehoods.