Coercion

What Does Coercion Mean?

Coercion refers to the act of making someone do something against his or her will through power or improper use of authority. Any act that is proven to be done through coercion is illegal.

Insuranceopedia Explains Coercion

Power exerted in an act of coercion may be physical or psychological. A person may threaten or even do physical violence against another to make him or her do something. An employer may threaten firing an employee if he or she does not engage in something he or she wants him or her to do and the employee’s rights get violated. In terms of insurance, it is a form of coercion if someone forces a person to buy insurance. It is considered as an illegal trade practice.