Final answer:
Defamation occurs when false information is published with the intent to harm someone's reputation, with brochures falsely criticizing an insurance company's financial condition being a clear example.
Step-by-step explanation:
Defamation is best described as publishing or circulating false information with the intent to harm the reputation of an individual or entity. In the context of the choices provided, brochures falsely criticizing the financial condition of an insurance company would constitute defamation, assuming the information is incorrect and results in harm to the company's reputation or income.
Not all negative or critical information constitutes defamation; for the media to be liable for defamation, there must be proof of libel or slander, meaning the information is known to be false or published with a 'reckless disregard' for the truth, particularly in the case of public figures.