Insurance 4

Solicitation of insurance includes A) Inviting prospective purchasers to enter a contract for an insurance product B) making general or specific recommendations concerning insurance products C) comparing insurance products, advising on insurance matters, or interpreting policies or coverages D) all of the above

A) Inviting prospective purchasers to enter a contract for an insurance product B) making general or specific recommendations concerning insurance products C) comparing insurance products, advising on insurance matters, or interpreting policies or coverages D) all of the above

All of the following are involved in a product presentation EXCEPT A) pressure B) education C) discussion D) disclosure

A) pressure

Which of the following is NOT part of a product presentation?

Asking for Referrals

All of the following are reasons why it is seldom in the best intrerest of a policyholders to replace a life insurance policy with a new one EXCEPT A) most of the five-year premium is swallowed up in commission B) replacements 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) replacements policies are never in the best interest of the policyowner

Which of the following is NOT a provision of the NAIC's Life Insurance Illustration Model Regulation? A) Each policy illustration must be accompanied by a written explanation or policy summary B) replacements policies are never in the best interest of the policyowner C) Each policy illustration must show that cash values and coverage vary depending on changes in an insurer's cost and dividends. D) Each policy illustration must be complete

B) replacements policies are never in the best interest of the policyowner

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) Applicant's analysis report

Which of the following is an example of churning? A) Illegally inducing a person to drop existing insurance to purchase similar coverage with another agent or company B) Rephrassing a policy provision in such a way that it says the opposite of the original C) Replacing a policy with the intent of earning additional premiiums or commissions D) Representing an insurance policy as a retirement plan

C) Replacing a policy with the intent of earning additional premiiums or commissions

In what phase of the selling process are serious problems of misrepresentation likely to occur?

Presentation of recommendations

Which of the following is NOT part of the sales presentation?

Review the product application

Which of the following should a producer NOT do durring the presentation?

Sell a policy

The use of preprinted material in a sales pressentation is recommended for which of the following reasons?

Such material generally has been reviewd for compliance

Which of the following is the goal of a sales presentation?

To educate the client so the client can make her own decisions about what's right for her

Which of the following is an objective of the NAIC?

To encourage uniformity in state insurance laws and regulations

The basis for many state statutes insurance advertising is the NAIC's

Unfair Trade Practies Act

Which of the following phrases should agents avoid using when explaining policies to prospective applicants or clients?

Vanishing Premium

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, this practice is called

churning

When an agent spreads a false story that damages a competing agent's reputation, the offense is called

defamation

Ethics is best describe as

instruction on how to interact with fellow members of a group or community

Selling variable universal life insuracne policies as mutual funds is an example of a prohibited practice called

misrepresentation

Diverting insurance funds for personal use is an example of

misuse of premiums

An insurance salesperson who offers a $100 gourment dinner in exchange for the purchase of a life insurance policy would be considered to have violated ethical sales practices by

rebating

Jim gives Bill a couple of tickets to a baseball game to thank him for purchasing a policy. This is an example of

rebating

Melanie is newly licensed producer. A customer calls and asks for some product recommendations, but Melanie thinks that she is not yet qualified to help the customer. therefore, Melanie has an ethical responsibility to

seek help from a more experienced colleague or other professional before responding to the customer's questions

The purpose behind full disclosure requirements is to

to help a client make a informed decision