During a routine market conduct examination of a regional life and health agency, state regulators discovered a pattern of compliance failures among several top-producing agents. The examiners categorized each offense according to specific statutory definitions. Based on the NAIC Model Unfair Trade Practices Act, which of the following disciplinary findings specifically represents the illegal practice of twisting?
- Inducing a policyholder to lapse an existing life insurance contract and purchase a new one from a competing carrier by intentionally concealing the new policy's prolonged surrender charges.Cevap
- BOffering prospective clients a complimentary, high-value estate planning service as a direct incentive to secure their signatures on new life insurance applications.
- CDistributing a maliciously fabricated memorandum to prospects that falsely characterizes a competing insurer as being under state supervision for imminent financial insolvency.
- DPublishing a digital marketing campaign that deceptively guarantees an unconditionally high minimum interest rate on fixed annuities without disclosing the contractual limitations.
Cevap
Inducing a policyholder to lapse an existing life insurance contract and purchase a new one from a competing carrier by intentionally concealing the new policy's prolonged surrender charges.
The correct answer accurately describes twisting, which is the act of making a false statement, misrepresentation, or incomplete comparison of policies to persuade a policyholder to lapse, forfeit, surrender, or replace an existing insurance policy with a new one.
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Twisting as an Unfair Trade Practice
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