Of the Following Practices, Which One Is NOT Accepted in Insurance

question 387

Multiple Choice

Of the following practices, which one is NOT accepted in insurance and annuity sales?

• A) Reviewing insurance company ratings
• B) Monitoring customer complaints against insurance companies
• C) Verifying that personnel are properly licensed
• D) Churning accounts

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Definitions:

Unrealized Gain

The hypothetical profit on an investment that has not yet been sold, and thus, not yet converted into actual cash.

Hedged Item

An asset, liability, or planned transaction exposed to price risks that are offset by using a hedging instrument.

Anticipated Transaction

A future financial operation or deal that is expected to occur.

Existing Asset

Assets that are currently in possession or use by a company, as opposed to newly acquired or disposed assets.