An insurance producer promises to return 10% of the premium to a policyowner's brother for referring his business. This is considered

Question

Certilyst · Accepted Answer

D Rationale: This situation is considered rebating. Rebating refers to the practice of returning a portion of the premium to an insured as an inducement to purchase the insurance policy.

Twisting involves misrepresenting or persuading a policyholder to replace their current insurance with a new policy, which is not applicable here.

Material misrepresentation occurs when false information significantly affects the risk assessment by the insurer, which does not describe the act of returning a premium portion.

Fraud entails deceitful practices for personal gain, but simply offering a rebate is not inherently fraudulent if disclosed properly, making it a legitimate practice in some jurisdictions.

Life Accident and Health or Sickness Producer Online Exam Arizona

An insurance producer promises to return 10% of the premium to a policyowner's brother for referring his business. This is considered