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Cards In This Set
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An insurance salesperson who offers a $100 gourmet dinner in exchange for the purchase of a life insurance policy would be considered to have violated ethical sales practices by
A. twisting B. replacement C. churning D. rebating |
D
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In what phase of the selling process are serious problems of misrepresentation likely to occur?
A. Approach B. Presentation of Recommendations C. Fact finding and needs an needs analysis D. Policy delivery and ongoing service C. |
B
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Which of the following phrases should agents avoid using when explaining policies to prospective applicants or clients?
A. Cash value B. Vanishing premium C. Flexible premium D. Death benefit |
B
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All of the following are involved in a product presentation except
A. pressure B. education C. discussion D disclosure |
A
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Which of the following is NOT part of the home office underwriting process?
A. Credit report B. Medical Information Bureau report C. Applicant's analysis report D. Inspection report |
C
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The basis for many state statutes regulating insurance advertising is the NAICs
A. McCarran-Ferguson Act B. Fair Credit Reporting Act C. Ethics in Advertising Act D. Unfair Trade Practices Act |
D
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Ethics is best described as
A. laws and statutes enacted by duly elected representatives B. religious rituals and ceremonies C. instructions on how to interact with fellow members of a group or community D. a society's laws and regulations |
C
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Which of the following is the goal of a sales presentation?
A. To educate the client so the client can make her own decisions about what's right for her B. To sell the client as many products as possible C. To convince the client that the producer's recommendations are best D. To explain the rules and regulations governing particular insurance products |
A
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Which of the following is not part of a sales presentation?
A. Review and re-establish the client-producer relationship B. Introduce the recommended policy C. Review the product application D. Review the client's needs and priorities |
C
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Which of the following should a producer not do during a presentation?
A. Explain and educate B.Sell a policy C. Motivate the client D. Openly discuss a policy's limitations |
B
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All of the following are reasons why it is seldom in the best interest of a policyholder to replace a life insurance policy with a new one except
A. most of the first-year premium is swallowed up in commission B. replacement policies are never in the best interest of the policyowner C. the premium is higher because the insured is older D. waiting periods begin anew |
B
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Diverting insurance funds for personal use is an example of
A. replacement B. rebating C. misuse of premiums D. misrepresentation |
C
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Selling variable universal life insurance policies as mutual funds is an example of a prohibited practice called
A. twisting B. misrepresentation C. replacement D. rebating |
B
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When an agent spreads a false story that damages a competing agent's reputation, the offense is called
A. twisting B. defamation C. disclosure D. rebating |
B
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When values of an insurance policy are used to purchase another policy with the same insurer for the sole purpose of earning additional premiums or commissions, the practice is called
A. replacement B. misalliance C. rebating D. churning |
D
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