A state Department of Insurance compliance division is reviewing four separate disciplinary cases involving licensed producers. Match each specific producer action detailed in the case files to the corresponding statutory unfair trade practice.
- Distributing a circular that falsely suggests a rival insurer's surplus is inadequate to meet its claims obligations.Defamation
- Requiring a property developer to purchase builders risk coverage exclusively through a bank's affiliated agency in order to close a construction loan.Coercion
- Inducing a policyholder to lapse a permanent life policy to buy a new one by providing an incomplete comparison that hides the new policy's surrender charges.Twisting
- Offering to waive the first month's premium out of the agent's own pocket to convince a business owner to sign a group health contract.Rebating
Answer
1 matches Defamation, 2 matches Coercion, 3 matches Twisting, 4 matches Rebating.
Each producer action aligns directly with standard statutory definitions for Unfair Trade Practices: false statements about financial condition are Defamation; tying loans to specific insurance purchases is Coercion; deceptive policy replacement is Twisting; and offering off-contract financial incentives is Rebating.
Step-by-Step Solution
Key Concept
Unfair Trade Practices