General Insurance PrinciplesQuestion 599 of 716
A producer who holds premiums collected from clients before remitting them to the insurer is acting in a ________ capacity and must not commingle those funds:
a.fiduciary
b.adversarial
c.purely clerical
d.competitive
Explanation
Handling other people's money creates a fiduciary duty, requiring the producer to keep those funds separate and remit them properly. The relationship is not adversarial, competitive, or merely clerical.
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- Churning differs from twisting in that churning involves:
- Making false or maliciously critical statements about another insurer's financial condition is the prohibited practice of:
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)