Unfair Trade Practices

False Advertising

-*specifically includes misrepresentation of the following:* 1. terms, benefits, conditions, or advantages of any insurance policy 2. any dividends to be received from the policy, or previously paid out 3. financial condition of any person or the insurer 4. the true purpose of an assignment or loan against a policy -also includes representing a policy as a share of stock, or using names or titles that may misrepresent the true nature of the policy -person or entity can't use a name that deceptively suggests it's an insurer

Controlled Business

-any coverage written on a producer's own life, health or property, and/or that of the producer's immediate family or business associates -licensee cannot collect commissions on controlled business above the state limit -most states won't issue a license to a person if it is determined that the primary purpose of the license is to write controlled business -in GA no more than 25% of the agent's volume of insurance per year can be issued on controlled business

Rebating

-any inducement offered to the insured in the sale of ins. products that is not specified in the policy -both offer and acceptance are illegal -rebates may include, but aren't limited to: 1. rebates of premiums payable on the policy 2. special favors or services 3. advantages in the dividends or other benefits 4. stocks, bonds, and securities, and their dividends or profits

Misrepresentations

-can't issue, publish, or circulate any illustration or sales material that is false, misleading, or deceptive as to policy benefits or terms, the pmt of dividends, etc. -also refers to oral statements

Unfair Discrimination

-discrimination in rates, premiums, or benefits for persons within the *same class* or with the same life expectancy -no discrim. may be made on the basis of an individual's marital status, race, national origin, gender, sexual orientation, creed, or ancestry unless the distinction is made for a business purpose or required by law

Defamation

-oral or written statement is made to injure a person engaged in the insurance business -also applies to statements that are *maliciously critical of the financial condition* of any person or company

Twisting and Churning

1. Twisting: -a misrepresentation, or incomplete or fraudulent comparison of insurance policies that persuades an insured/owner, to his or her detriment, to cancel, laps, switch policies, or take out a policy w/ another insurer 2. Churning: -replacing insurance policies for the sole purpose of making commissions -original policy values are used to purchase another insurance *w/ the same insurer* for purpose of earning additional premiums, fees, or commissions -illegal to replace existing life or disability policies w/ new policies if the producer can't demonstrate that the replacement will benefit the insured