Chapter 4 Review Questions

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

The practitioner’s discussion of a product over the telephone
The practitioner’s stating or implying that he or she has skills, experience or credentials that are not possessed
The practitioner’s failure to provide a complete comparison
The practitioner’s failure to provide full disclosure


Under what circumstances may a life insurance agent claim affiliation with a government agency as a means of suggesting governmental approval?

If the agent is a registered investment adviser
If the agent has a Series 6 or Series 7 registration
Upon application to the SEC
Never



What is the ethical concern in referring to a life insurance policy as a “private pension?”

The term used obscures the true identity and nature of the product
The product would need to be governed by ERISA legislation
Private pensions refer only to modified endowment contracts
There is no ethical concern in referring to a life insurance policy as a private pension


What is generally the first substantive interview in the life insurance sales process?

The approach
The fact-finding interview
The closing interview
The delivery interview

What is/are the principal ethical concern(s) in the presentation step of the sales process?

Selection of the appropriate product
Communication about the recommended product
Both a and b
Neither a nor b