Principios Generales de SegurosPregunta 594 de 716
Rebating, which most states prohibit as an unfair trade practice, involves:
a.Charging exactly the filed premium and accurately explaining every feature and limitation of the policy to the applicant before the sale
b.Offering the applicant something of value not stated in the policy, such as sharing commission, to induce a sale
c.Explaining the policy's features accurately
d.Recommending that the applicant consider a competitor
Explicación
Rebating gives a prospect an inducement outside the contract terms, such as part of the producer's commission. Most states ban it as unfair discrimination. California is an exception: Proposition 103 (1988) repealed the state's anti-rebate sections, and Insurance Code §750(d) states that nothing in that section limits the rebating of commissions by insurance agents or brokers as authorized by Proposition 103. Charging the filed premium and honestly explaining coverage are proper.
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Preguntas relacionadas de este tema
- Concealment is best defined as:
- A waiver, as the term is used in insurance, is:
- Estoppel refers to:
- Twisting is a prohibited practice in which a producer:
- 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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Revisado por John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verificar)