Of the following practices, which one is NOT accepted in insurance and annuity sales?
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A. B. C. D.D
The practice that is NOT accepted in insurance and annuity sales among the given options is D. Churning accounts.
Churning refers to the unethical practice of frequently buying and selling securities in a customer's account solely for the purpose of generating commissions for the financial professional, rather than for the benefit of the client. In the context of insurance and annuity sales, churning may involve replacing an existing policy or annuity with a new one, without any valid reason, solely to generate commissions for the insurance agent or broker.
The other three practices mentioned in the options, namely reviewing insurance company ratings, monitoring customer complaints against insurance companies, and verifying that personnel are properly licensed, are all considered essential and accepted practices in insurance and annuity sales.
Reviewing insurance company ratings helps ensure that the insurance company has a good financial strength and stability, which is crucial in providing reliable insurance coverage and fulfilling claims.
Monitoring customer complaints against insurance companies helps detect any potential issues or problems that may arise, allowing the insurance agent or broker to take appropriate action to address them and ensure customer satisfaction.
Verifying that personnel are properly licensed is important to ensure that they have met the necessary qualifications and training requirements to provide insurance and annuity sales services. This helps ensure that the customers receive accurate and reliable information and advice regarding their insurance and annuity needs.
In conclusion, while reviewing insurance company ratings, monitoring customer complaints, and verifying personnel licensure are accepted practices in insurance and annuity sales, churning accounts is considered an unethical practice and not accepted in the industry.