LLQP (Life Licence Qualification Program) Practice Exam · Question
An agent induces a client to switch from one permanent life insurance policy to a very similar one at the same company solely so the agent can earn a new first-year commission. This is called:
Churning (or 'twisting' if it involves another company) is the unethical practice of an agent replacing an existing policy with a new one primarily to generate
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Question: An agent induces a client to switch from one permanent life insurance policy to a very similar one at the same company solely so the agent can earn a new first-year commission. This is called:
Answer options:
- Rebating
- Fronting ✅ Churning
- Trafficking
Correct answer: Churning
Explanation: Churning (or 'twisting' if it involves another company) is the unethical practice of an agent replacing an existing policy with a new one primarily to generate new commissions, without a legitimate benefit to the client. Rebating is sharing commission; Fronting is using another's license; Trafficking is buying/selling policies.
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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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