2-15 (Unit 4 Licensure ethics & insurance producer)

Service to the client includes all of the following except a educating the client before during and after the sale b treating all information with confidentiality c Educating the client after the sale d Showing loyalty to prospects and clients

C- educating the client BEFORE DURING AND AFTER sale

An agents license may be revoked or suspended for which of the following acts? a Rebating b Misrepresentation c Twisting d All the above

D- all the above Rebating, misrepresentation and twisting are all violations

Twisting may involve any of the following actions on the part of an agent, except: a Misrepresenting a proposed policy to a prospect b Making an incomplete comparison of policies c Misrepresenting a policyowner's existing policy d converting a client's convertible term policy to permanent insurance.

D- converting a clients convertible term policy to permanent insurance. A convertible term policy gives the client the RIGHT TO CONVERT a term policy to a permanent policy and is an accepted practice on the part of the agent

Regarding "Full disclosure" which of the following statements is correct?

Full and accurate disclosure is the cornerstone of the product presentation

All the following are part of a presentation EXCEPT a explaining policies b Asking for referrals c Motivating the client d Discussing a policy's limitations

B- asking for referrals is usually done after the sale

Twisting pertains to the illegal act of an agent who: a induces a prospect to purchase more insurance than is needed to meet objectives b persuades a prospect to lapse an existing policy in order to purchase a new policy through misrepresentation or fraudulent comparison c shows the prospect one policy but has the prospect sign an application for a different policy d Persuades a prospect to buy more insurance than he or she can afford

X (C) B- Persuades a prospect to lapse an existing policy in order to purchase a new policy through misrepresentation or fraudulent comparison. inducing a person to lapse, forfeit, surrender, terminate, retain or convert any insurance policy, or to take out a policy of insurance in another company

Representing to the applicant that a specific ancillary coverage or product is required by law in conjunction with the purchase of insurance when such coverage or product is not required is an unfair trade practice called. a twisting b churning c Sliding d Coercion

X(B) C- sliding You cannot "slide" untrue facts for personal gain, to a prospect

A person who acts in any way for an insurance company not licensed in the state of Florida is: a Allowed to do so with special permission b Required to obtain a special license c Motivating the client d discussing a policy's limitations

X(b) C- Motivating the client- As of 10/1/02 any agent licensed in this state, who, in this state, represents or aids an unauthorized insurer commits a third degree felony

Churning pertains to the illegal act of an agent who: a induces a prospect to purchase more insurance than is needed to meet objectives b Persuades a prospect to lapse an existing policy in order to purchase a new policy in the same company through misrepresentation or fraudulent comparison c Shows the prospect one policy but has the prospect sign an application for a different policy d Persuades a prospect to buy more insurance than he or she can afford.

x(a) b- persuades a prospect to lapse an existing policy in order to purchase a new policy in the same company through misrepresentation or fraudulent comparison. Churning Is the illegal replacement of ones policy with another policy in the same company.

An agent emphasizes the following points in a sales interview while recommending a participating life paid-up at age 65 policy to a prospect which constitutes a misrepresentation a. Misrepresenting a proposed policy to a prospect b making an incomplete comparison of policies c misrepresenting a policyowner's existing policy d converting a clients convertible term policy to permanent insurance

x(a) d- converting a clients convertible term policy to permanent insurance. A life paid up at age 65 policy endows at age 100 at age 100, the cash value equals the death benefit therefore, the policy has matured (endowed) This policy is a LIMITED PAY WHOLE LIFE payments are limited to age 65 but protection extends to the insured's death or to age 100

Twisting is a An external replacement b an internal replacement c both A&B d none of the above

x(d) a- an external replacement Twisting is replacing with a separate company through misrepresentation