Multiple Choice
Identify
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1.
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Fully one-third of all Errors & Omissions
(E&O) claims by property/casualty agents relate to:
a. | twisting and churning of
coverage | b. | making unsuitable
recommendations | c. | renewal (or
non-renewal) of coverage | d. | none of the
above |
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2.
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What is potentially the most serious ethical issue
in the approach step of the sales process?
a. | The agent’s failure to provide a complete
comparison | b. | The agent’s
discussion of a product over the telephone | c. | The agent’s
failure to provide full disclosure of all facts | d. | The agent’s
stating or implying that he or she has skills, experience or credentials that are not possessed
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3.
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What is generally the first substantive interview
in the insurance sales process?
a. | the fact finding interview | b. | the approach | c. | the closing
interview | d. | the opening interview |
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4.
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What are the areas that may be ethical concerns in
the use of personal brochures?
a. | Misstating personal or professional
accomplishments | b. | Claiming expertise
or education not possessed | c. | Failure to include
material information | d. | All of the
above |
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5.
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An agent has an ethical duty to disclose which of
the following to his or her clients:
a. | the terms of his or her contract of agency
| b. | all material facts concerning a recommended
product | c. | all facts concerning a recommended
product | d. | all of the above |
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6.
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Which step of the selling process is the least
appropriate venue for discussing the details of insurance products?
a. | the approach | b. | presentation of
recommendations | c. | delivery of policy
documents | d. | the fact-finding
interview |
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7.
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Which of the following federal laws mandates the
privacy of client information gathered by an insurance agent?
a. | Health Insurance Portability and Accountability Act
| b. | Financial Services Modernization
Act | c. | McCarran-Ferguson Act | d. | ERISA |
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8.
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For misrepresentation to be unethical, it must be:
a. | unintentional | b. | intentional | c. | either a or
b | d. | neither a nor b |
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9.
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Under what circumstances may an insurance agent
claim affiliation with a government agency as a means of suggesting governmental
approval?
a. | Upon application to the SEC | b. | If the agent has a Series 6 or Series 7 registration with
FINRA | c. | If the agent is a registered investment adviser
| d. | never |
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10.
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What is/are the principal ethical concern(s) in the
presentation step of the sales process?
a. | Communication about the recommended product
| b. | Selection of the appropriate product
| c. | Both a and b | d. | Neither a nor b |
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