LESSON 1: BASIC PRINCIPLES OF LIFE AND HEALTH INSURANCE and THE INSURANCE INDUSTRY

Section 1.11 Review

It is usually in the best interest of a policyholder to replace a life insurance policy with a new one.

	a)	True
	b)	False
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Twisting is referred to as "external replacement" and is the practice of inducing a person to drop existing insurance to buy similar coverage with another producer or company.

	a)	True
	b)	False
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Churning is also called "internal replacement" and is the practice of inducing a person to drop their existing policy to buy another policy with the same company.

	a)	True
	b)	False
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The __________ bears the burden of proving a policy replacement is in the client's best interest.

	a)	insurer
	b)	insured
	c)	agent
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Overstating promises and guarantees is a form of:

	a)	churning.
	b)	twisting.
	c)	misrepresentation.
	d)	concealment.
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An agent may intermingle premium payments with the agent's personal funds only if the funds are collected at a time when the agency is closed.

	a)	True
	b)	False
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