Question

K is an agent who made an improper sale of an annuity to a client. Which of the following corrective actions would the Department of Financial Services likely order K to take?

A) Provide a refund to the client
B) Purchase additional coverage for the client
C) Increase the agent's commission
D) Terminate the client's policy

Answer 1

The Department of Financial Services would likely order agent K to provide a refund to the client for making an improper sale of an annuity.

Step-by-step explanation:

The Department of Financial Services would likely order agent K to take the corrective action of providing a refund to the client.

When an agent makes an improper sale of an annuity to a client, it means that they have sold a product that is not suitable for the client's needs or financial situation. In such cases, the Department of Financial Services typically requires the agent to rectify the situation by providing a refund to the client.

By providing a refund, the client will be compensated for the improper sale, and the agent will be held accountable for their actions.