Marketing Practices (Law Ch. 3)

Question 1

Actuarial Principles

Answer 1

Based on expectations of loss due to death, disability, or other types of claims. Director will give at least 10 days to correct a situation when he believes an insurer is unfairly discriminating.

Question 2

Rebate

Answer 2

Kickback to a purchaser of insurance by the producer or insurer of premium and/or commission and is considered an illegal inducement.

Question 3

Twisting

Answer 3

Make a misrepresentation to induce a person with ownership rights in life insurance to lapse, forfeit, surrender, assign, effect a loan against, exchange or convert the policy.

Question 4

Commissions

Answer 4

An insurer or producer may not legally pay an unlicensed person nor can they accept commission, service fee, brokerage, or other valuable considerations for selling, soliciting, or negotiating insurance in OR.

Question 5

Service Fee

Answer 5

A charge arising out of an insurance transaction made by a producer to a party other than the insurer.