Final answer:
Defamation is the act of damaging a person's reputation by making false statements about them.
Step-by-step explanation:
The act of an insurer distributing public brochures that contain a false statement regarding a competitor's ability to pay claims is considered an example of defamation. Defamation refers to the act of damaging a person's reputation by making false statements about them. In this case, the insurer is spreading false information about the competitor, which could harm their reputation and business.