Final answer:
Customer representatives may do all of the following except receiving new clients. Customer representatives can do several tasks such as receiving commissions and advising customers, but they cannot engage in activities that would lead to adverse selection, such as accepting new high-risk clients without the company's consent. Therefore, the correct answer is D. receive new clients.
Step-by-step explanation:
Customer representatives may do all of the following:
- Receive commissions.
- Advise a customer on his existing policy premiums.
- Help customers select life insurance policies.
Therefore, the correct answer is D. receive new clients.
Customer representatives can do several tasks such as receiving commissions and advising customers, but they cannot engage in activities that would lead to adverse selection, such as accepting new high-risk clients without the company's consent.
Customer representatives in the insurance industry can undertake several roles but there are limitations to what they can do within the confines of their job and regulations. They can indeed receive commissions for their sales and services, advise customers on their existing policy premiums, and help customers select life insurance policies. However, when it comes to the market dynamics impacted by adverse selection, companies may be cautious. Adverse selection occurs when there is an asymmetry of information between buyers and sellers, with high-risk individuals more likely to purchase insurance, potentially leading to market failure. To prevent this, insurance companies may not sell insurance to individuals who pose high risks, or adjust premiums based on risk levels. The customer representatives typically cannot accept new high-risk clients without the company's consent due to the potential adverse selection issues, aligning with the company's strategies to manage risk within government laws and regulations.