Illegal marketing practices Flashcards
Telling the insured that an optional coverage is either required by law or included in the policy at no charge. It also means adding coverage to a policy without disclosing the coverage was added for additional premium.
Sliding
Getting a client to drop his/her existing policy in order to buy yours.
Twisting
Using the values in an existing policy to purchase another policy with the same insurer.
Churning
Giving back a portion of your commission to a client who does business with you. In Florida, this is allowed but comes with stringent rules to follow.
Rebating
Persuading an applicant to do business with you by the use of force or threats.
Coercion
Lying or deceiving a person about any of the benefits terms or conditions on an insurance contract
Misrepresentation
Saying bad or derogatory things about people that are untrue.
Defamation
Using misleading statements and prices in order to persuade a customer to do business with you.
False advertising
Discriminating against people based on race, gender, age, marital status, sexuality, etc. where there is no actuarial basis for discriminating, and/or where the law protects said people from discrimination.
Unfair discrimination
Lying, concealing data, or intimidating people in an attempt not to pay claims. Also, failing to return calls or maintain complaint handling procedures.
Unfair claim settlement
Intentional deception for ones own gain. It is a criminal act and is likely to result in fines and im- prisonment.
Fraud
Policies written for your own family, your business, or other entities or organizations that you have a financial interest in. What you cannot do is open an agency with the intention of selling more than 50% of the insurance to yourself, family and your own corporations.
Controlled business
Skilled nursing care is a benefit category found in:
a. AD&D
b.Long Term Care policies
c.Life insurance policies
d.Medical expense
b. long term care
