Which illegal action involves deceit for financial gain within insurance?

Fraud and False Statements is the correct choice because this illegal action specifically pertains to deceitful practices aimed at financial gain, particularly within the insurance industry. This can involve misrepresenting information or falsifying documents to deceive insurance companies, thereby obtaining money or benefits to which one is not entitled. Fraud can take many forms, from staging accidents to exaggerating claims, all of which are motivated by the intent to gain at the expense of the insurer or other parties.

The other options relate to different kinds of misconduct. Twisting involves a manipulative practice where an agent persuades a policyholder to surrender or replace an existing policy for the agent’s financial benefit, but it doesn't necessarily involve outright deceit for personal gain. Unfair Discrimination refers to treating individuals differently based on prohibited factors in insurance practices rather than on objective risk-related criteria. Defamation involves making false statements that harm someone's reputation, which is a different issue from deceitful financial schemes within the realm of insurance. In summary, the concept of fraud and false statements is central to understanding illegal acts motivated by financial gain within insurance, making this choice accurate.