Marketing Practices (Law Ch. 3) Flashcards Preview

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Flashcards in Marketing Practices (Law Ch. 3) Deck (5)
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1
Q

Actuarial Principles

A

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.

2
Q

Rebate

A

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

3
Q

Twisting

A

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.

4
Q

Commissions

A

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.

5
Q

Service Fee

A

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