Unit four Licensure, Ethics & the insurance producer

An agent emphasized 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 ?

The policy also will endow at age 65.

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.

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.

TWISTING may involve any of the following actions on the part of an agent,EXCEPT:

Converting a client's convertible term policy to permanent insurance.

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

Defamation

Regarding "full disclosure", which if the following statements is correct?

Full and accurate disclosure is the cornerstone of the product presentation.

A person who acts in any way for an insurance company not licensed in the State in Florida is:

Guilty of a felony.

The purpose behind full disclosure requirements is to:

Help client make an informed decisions.

All of the following are part of a presentation, EXCEPT:

asking for referrals

Ethics is best described as

instructions on how to interact with fellow member's of a group or community

TWISTING is:

An external replacement.

Which of the following is NOT part of the home office underwriting process ?

Applicant's analysis report.

Which of the following is NOT a provision of NAIC's Life Insurance illustrations model regulations?

Each policy illustration should use the words vanish and vanishing premium sparingly.

Service to the client includes all of the following, EXCEPT:

Educating the client after the sale.

Selling variable universal life insurance 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.

CHURNING pertains to the illegal act of an agent who:

Persuades a prospect to lapse an existing policy in order to purchase a new policy in the same company through misrepresentation or fraudulent comparison.

TWISTING pertains to the illegal act of an agent who:

Persuades a prospect to lapse an existing policy in order to purchase a new policy through misrepresentation or fraudulent comparison.

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

Presentation of recommendations.

An agent's license may be revoked or suspended for which of the following acts?

Rebating, Twisting and misrepresentation.

An insurance salesperson who offers a $100 gourmet dinner in exchange 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.

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

Review the product application.

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

Sell a policy.

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:

Sliding.

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

Such material generally has been reviewed for compliance.

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:

The old policy, viewed objectively, no longer meets the stated needs and objectives of the policyholder.

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

Unfair Trade Practices Act.

Which of the following phrases cannot be used when explaining policies to prospective applicants or clients?

Vanishing premium.