LLQP (Life Licence Qualification Program) Practice Exam · Question
An agent encourages a client to cancel a three-year-old life insurance policy and purchase a similar policy with the SAME insurer to help the agent meet a sales quota. This prohibited practice is known as:
Churning is the practice of inducing a client to replace an existing policy with a new one from the same insurer, primarily to generate a new commission for the
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Question: An agent encourages a client to cancel a three-year-old life insurance policy and purchase a similar policy with the SAME insurer to help the agent meet a sales quota. This prohibited practice is known as:
Answer options:
- Twisting ✅ Churning
- Tied Selling
- Fronting
Correct answer: Churning
Explanation: Churning is the practice of inducing a client to replace an existing policy with a new one from the same insurer, primarily to generate a new commission for the agent, without a valid benefit to the client. This is an unethical practice.
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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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