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A producer has indicated to a potential client that the proposed life insurance policy is covered by the Massachusetts Life and Health Insurance Guaranty Association. This action taken by the producer is

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Martebi

There are lot of people involved in production. The action taken by the producer is prohibited by law.

Which  actions is considered to be an unfair trade practice?

Unfair business practices are said to be any kind of misrepresentation, untrue advertising or depiction of a good or service,  noncompliance with the terms of manufacturing standards, etc.

The action of the producer is prohibited because it is not the right thing to do and also not backed up by law.

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