LLQP (Life Licence Qualification Program) Practice Exam · Question
An agent replaces a client's existing life insurance policy with a very similar one every two years primarily to earn new first-year commissions. This unethical practice is known as:
Churning (or twisting) is the unethical practice of replacing a policy for the primary purpose of generating new commissions for the agent, rather than providin
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Question: An agent replaces a client's existing life insurance policy with a very similar one every two years primarily to earn new first-year commissions. This unethical practice is known as:
Answer options:
- Front-running
- Rebating
- Co-mingling ✅ Churning
Correct answer: Churning
Explanation: Churning (or twisting) is the unethical practice of replacing a policy for the primary purpose of generating new commissions for the agent, rather than providing a benefit to the client.
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- A life insurance policy that offers lifelong coverage, a guaranteed death benefit, and a savings component tha
- Group benefits in Canada commonly include:
- Sarah, a 35-year-old marketing professional in Ontario, purchases a participating whole life insurance policy
- Mark, a 45-year-old business owner in British Columbia, has a Universal Life policy with a Level Cost of Insur
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