LLQP (Life Licence Qualification Program) Practice Exam · Question
An agent offers to pay the first two months of premiums for a client to induce them to sign a life insurance application. This prohibited practice is known as:
Rebating occurs when an agent offers a portion of their commission or any other financial inducement to a client to encourage them to purchase a policy. This is
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Question: An agent offers to pay the first two months of premiums for a client to induce them to sign a life insurance application. This prohibited practice is known as:
Answer options:
- Tied Selling
- Churning
- Twisting ✅ Rebating
Correct answer: Rebating
Explanation: Rebating occurs when an agent offers a portion of their commission or any other financial inducement to a client to encourage them to purchase a policy. This is a prohibited practice in the insurance industry.
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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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