Life Insurance Basics
During a sales presentation a producer urges a client to drop an existing policy for a new one using incomplete comparisons. What practice is that?
Answer and explanation
Answer: C. Twisting is inducing a lapse or replacement through misleading comparisons, and where the same insurer's business is churned the term is churning. Rebating, defamation and coercion are distinct prohibited practices.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, twisting and churning
More life insurance basics questions
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- What must a producer disclose at the outset of a life insurance sales presentation?
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