Maintaining ethical conduct is a core regulatory requirement for all licensed insurance professionals. Among the following scenarios, which statements accurately describe a violation classified as an Unfair Trade Practice? (Select all that apply)
- A producer commits twisting by knowingly providing an incomplete comparison of two policies' benefits to induce a policyowner to lapse their existing coverage.Cevap
- A broker engages in defamation by publishing a newsletter that makes derogatory and false statements regarding a competitor's claims-paying ability.Cevap
- CAn advisor commits twisting by offering to pay a prospective client's first month of premiums out of pocket to close a difficult sale.
- DAn insurer engages in unfair discrimination by charging varying premiums to individuals of the same age and gender based on statistically validated differences in life expectancy.
Cevap
The statements describing a producer using incomplete comparisons to induce lapsing (twisting) and a broker publishing false derogatory statements about a competitor (defamation) correctly identify Unfair Trade Practices.
The correct statements accurately define two major Unfair Trade Practices. Twisting occurs when a producer makes incomplete or misleading comparisons to induce a client to lapse or surrender an existing policy. Defamation occurs when false, maliciously critical, or derogatory statements are made regarding an insurer's financial condition to injure their reputation.
Adım Adım Çözüm
Anahtar Kavram
Statutory Definitions of Unfair Trade Practices