Question

Which of the following statements is INCORRECT?

A. Replacing insurance policies for the purpose of making commissions is legal.
B. Discrimination in rates, premiums, policy benefits, etc. for persons within the same class or with the same life expectancy is illegal.
C. Misrepresenting the true nature or facts of a policy or its benefit in order to induce a policyholder to surrender one policy and replace it with another is illegal.
D. It is illegal to be involved in any activity of boycott, coercion, or intimidation that is intended to restrict fair trade or to create a monopoly.

Answer 1

The incorrect statement is that replacing insurance policies for making commissions is legal.

Step-by-step explanation:

The incorrect statement among the options provided is A. Replacing insurance policies for the purpose of making commissions is legal. This statement is incorrect because replacing insurance policies solely for the purpose of earning commissions is generally considered unethical and a conflict of interest. It can also be deemed as insurance fraud in some cases. Individuals involved in the insurance industry are expected to act in the best interest of their clients, rather than solely for their own financial gain.

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