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LLQP (Life Licence Qualification Program) Practice Exam · Question

Which of the following is an example of 'tied selling'?

Tied selling, which is illegal, involves forcing a client to purchase one product or service as a condition for obtaining another product or service.

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Question: Which of the following is an example of 'tied selling'?

Answer options:

  • Selling a life insurance policy and a disability policy to the same client. ✅ Informing a client they will only be granted a mortgage if they buy life insurance from the same bank.
  • Offering a discount for multiple policies purchased at the same time.
  • Comparing the features of two different insurance companies.

Correct answer: Informing a client they will only be granted a mortgage if they buy life insurance from the same bank.

Explanation: Tied selling, which is illegal, involves forcing a client to purchase one product or service as a condition for obtaining another product or service.

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