Question

4. Andrea Agent is about to sell Fred a new insurance policy even though she knows that Fred is very confused about several key features in the policy and may not have sufficient income to pay future premiums. Which statement about Andrea Agent's actions is correct? a. Andrea has likely violated her ethical duties by selling a product that Fred may not be able to afford. b. Andrea has engaged in the unlawful practice of rebating. C. Andrea has engaged in the unlawful practice of twisting. od. Andrea has not violated any ethical duties as long as Fred can pay the initial premium

Answer 1

Rebating means returning a portion of the premium or the agent's commission to the insured.

Twisting means to use trickery to get someone to lapse a life insurance policy and buy another.

Just because Fred can pay the premium, it does not mean, Andrea has NOT violated any ethical duties. It is Important for Fred to KNOW and UNDERSTAND properly, ALL the terms & comditions.

Therefore, a. Andrea has likely violated her ethical duties.