What is the term used when an agent spreads a false story that damages a competing agent's reputation?

The term that describes the act of spreading a false story that harms a competing agent's reputation is defamation. Defamation refers to any false communication that injures a person's or organization's reputation. This can be done through written statements (libel) or spoken words (slander). In this context, since a story is spread, and assuming it is spoken rather than written, it could also qualify as slander, but the general term that encompasses both written and oral falsehoods aimed at damaging reputation is defamation.

Choosing defamation as the answer effectively encapsulates the broader legal protection afforded to individuals and businesses from false, damaging statements, emphasizing the serious nature of such actions in the realm of competitive practices among agents. It highlights the significance of maintaining ethical standards within the insurance industry, where reputation plays a crucial role in establishing trust with clients.