LLQP (Life Licence Qualification Program) Practice Exam · Question
An agent encourages a client to surrender an existing policy and purchase a new one from the same insurer, despite there being no clear advantage to the client. This practice is known as:
Churning is the unethical practice of replacing a policy with another from the same insurer primarily to generate new commissions for the agent, without a demon
Start free practice for LLQP (Life Licence Qualification Program) Practice Exam
374 questions · no signup required · 40 free questions per day
Question: An agent encourages a client to surrender an existing policy and purchase a new one from the same insurer, despite there being no clear advantage to the client. This practice is known as:
Answer options: ✅ Churning
- Twisting
- Fronting
- Rebating
Correct answer: Churning
Explanation: Churning is the unethical practice of replacing a policy with another from the same insurer primarily to generate new commissions for the agent, without a demonstrable benefit to the client.
Start free practice for LLQP (Life Licence Qualification Program) Practice Exam
374 questions · no signup required · 40 free questions per day
More about LLQP (Life Licence Qualification Program) Practice Exam
Related Questions
- 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
- A personal non-registered permanent life insurance policy on Liam, a 40-year-old engineer in Montreal, has acc
- Universal life is:
More for LLQP (Life Licence Qualification Program) Practice Exam candidates
Study guides
Question explanations
- 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
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free LLQP (Life Licence Qualification Program) Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.