Ethics for Financial Services Professionals FINAL EXAM (PA 132306)

Which of the following is the foundation of ethics for the insurance practitioner?

If you deal with your client in the way that you would like to be dealt with if the roles were reversed, what are you using as the basis for your relationship?

Minimum acceptable standards of conduct are established by which of the following?

Which of the following is not a subject over which the insurance practitioner generally has ethical control?

Which of the following is NOT a characteristic component of a profession?

When an insurer knowingly permits its agents to engage in unethical sales practices, it intends to give them authority to do so, even though the granting of such authority is not in their contract. What type of authority is the insurer giving the agents?

The individual states are specifically charged with regulating matters regarding which of the following?

Which of the following is a federal responsibility rather than the responsibility of state insurance regulators?

What is the name of the body of law and concepts that grew out of the English judicial system?

An agent’s authority to telephone prospects to arrange sales appointments is not normally stated in the contract but is intended to be given. What type of authority is this?

Which of the following is characteristic of implied authority but not of apparent authority?

Which of the following is not a defense to a charge of malpractice that an agent may offer?

Bill is a life insurance agent who has done business with Gary for many years. Gary traditionally purchased term insurance coverage and would customarily contact Bill before it expired to purchase new coverage. Gary failed to contact Bill before his current policy expired, and now Gary finds that he is uninsurable. Gary has sued Bill for failing to notify him that his coverage was expiring. Since it was customary for Gary to contact Bill before coverage expiration, what defense is Bill likely to maintain?

Unlike waiver, which refers to a right that is intentionally given up, what does estoppel involve?

Which of the following does not fall into the broad category of sales tools?

An insurance practitioner’s business card must do which of the following?

What licensing or registration is generally required before an insurance agent may refer to him- or herself as a financial planner?

Presenting an insurance or investment product that is suitable to meet the prospect’s needs is done in which step of the sales process?

Which of the following is not an authority conferred under the law of agency?

What is potentially the most serious ethical issue in the approach step of the sales process?

Sal is a life insurance agent for MultiMutual and does business as the Olde English Financial Group. Along with Sal’s name and telephone number, “Olde English Financial Group” is the only information on Sal’s business card. What ethical concern is raised?

Roland, an insurance agent for MegaMutual, knows that his customers want to avoid taxes whenever possible, so he talks about the tax advantages of life insurance at every opportunity. What else must Roland say about those advantages?

Which of the following is ethically required of the financial practitioner?

The approach step of the sales process may be accomplished in all the following situations EXCEPT

What is the name given to excessive trading in a client’s securities account to generate commissions?