Unfair Trade Practices
Learn the terms and meaning of the four unfair trade practices: Twisting, Rebaring, Coercion and Defamation.
>Twisting
Using an improper comparison of two policies in an effort to get the client to cancel their current policy to buy yours instead. This is usually detrimental to the client. You are allowed to sell person a better policy, twisting is lying about it being better.
>Rebating
Offering a client a benefit that is NOT in the policy in order to get them to buy the policy. For instance, telling the client once they buy the policy, and you get the commission check from the sale, you will give them money back from the check. One thing to note is, offering a multi-policy discount is ok, and even a client appreciation BBQ is fine. This is about offering and individual special things JUST to get them to buy.
>Coercion
>Coercion
It is common that a creditor may require a debtor to buy life insurance so in the event that debtor dies, the creditor can get their loan paid off. This is all fine, what’s not okay is telling the client they MUST buy a certain policy from a certain company in order to get the loan.
>Defamation<.h4>
This is making maliciously critical statements about another person in the insurance industry. As soon as you see the word “malicious” you know they are talking about defamation. Do not get tripped up when they say “False maliciously critical statements.” You see false, so you may think “oh that’s misrepresentation!” but that’s not the case, it’s Defamation because it’s malicious! On the state exam, they may not use the word malicious, so then your key word is financial statements.
Recommended: Gold
The GOLD Course is ALWAYS the recommended class series for all students as it teaches the material in more depth. Over 30 hours of the most in depth classes with a more intensive teaching of the topic. Learn more about P&C GOLD
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