Match each prohibited producer action with the correct statutory term for the unfair trade practice.
- RebatingOffering a premium reduction, kickback, or something of material value not specified in the contract to induce a sale.
- TwistingUsing misrepresentation or incomplete comparisons to persuade a policyholder to cancel, lapse, or switch their existing coverage.
- CoercionApplying physical or mental intimidation to force a client into an insurance transaction, resulting in unreasonable restraint of trade.
- Unfair DiscriminationApplying different rates, benefits, or conditions to individuals who belong to the exact same actuarial risk class.
Answer
Rebating matches with offering unseen value; Twisting matches with misleading to replace; Coercion matches with intimidation; and Unfair Discrimination matches with unequal treatment for the same risk.
Each prohibited action maps directly to its statutory definition. Rebating involves unwritten financial incentives. Twisting involves deceitful replacement. Coercion involves intimidation. Unfair Discrimination involves unequal treatment of equal risks.
Step-by-Step Solution
Key Concept
Statutory Definitions of Unfair Trade Practices