Final answer:
The correct option is B) Defamation.
The illegal practice you're referencing is known as defamation, which can be either libel or slander, depending on whether it's written or spoken. The media must balance the right to free speech with the prohibition against defamation but have certain protections, especially when making statements about public figures.
Step-by-step explanation:
The illegal practice of making false, maliciously critical, or derogatory statements about an insurer with the intent of causing injury is known as defamation. Defamation includes both libel (written defamation) and slander (spoken defamation).
Constituting defamation of character can cause a loss of reputation and income. The media, while protected by freedom of speech, do not have the right to commit defamation when the information is known to be false. However, the boundary between permissible and defamatory statements is nuanced.
When the media publish negative and harmful stories, they often do so as opinions, which are generally protected, or they rely on the public figure doctrine established by the New York Times v. Sullivan case, which requires a public figure to prove that a statement was made with 'actual malice' to succeed in a defamation lawsuit.