Final answer:
The correct answer is misrepresentation.
Step-by-step explanation:
The correct answer is d) misrepresentation. Convincing a prospective insured to buy an insurance policy based on exaggerations is considered to be a form of misrepresentation. Misrepresentation is the act of intentionally providing false or misleading information to deceive someone. In the context of insurance, it is important for insurance policies to be sold based on accurate and truthful information.