LLQP (Life Licence Qualification Program) Practice Exam · Question
An agent induces a client to replace an existing life insurance policy with a new one from the same insurer solely to earn a new commission, despite no change in the client's needs. This is known as:
Churning is the unethical practice of replacing an existing policy with a new one primarily to generate more commission for the agent, without a demonstrable be
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Question: An agent induces a client to replace an existing life insurance policy with a new one from the same insurer solely to earn a new commission, despite no change in the client's needs. This is known as:
Answer options: ✅ Churning
- Twisting
- Fronting
- Rebating
Correct answer: Churning
Explanation: Churning is the unethical practice of replacing an existing policy with a new one primarily to generate more commission for the agent, without a demonstrable 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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