General Insurance PrinciplesQuestion 612 of 716
A producer's duty to recommend coverage that genuinely fits the client's needs and financial circumstances is the principle of:
a.adhesion terms
b.cash rebating
c.sales coercion
d.suitability
Explanation
Suitability requires the producer to match the recommendation to the client's actual needs, resources, and objectives. Rebating and coercion are prohibited practices, and adhesion describes a contract characteristic.
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Related questions on this topic
- Describing insurance as an aleatory contract means that:
- Insurance is called a unilateral contract because:
- Insurance is a conditional contract, meaning that:
- Apparent authority is the authority an agent appears to have because:
- Implied authority of a producer is:
- In the legal relationship of agency, the insurance producer normally represents:
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)