An attempt by an agent to deter an insured from replacing an existing life insurance policy is called

Rationale

Conservation.

In insurance terms, conservation refers to the act of an agent trying to dissuade an insured from replacing their current life insurance policy. This practice aims to maintain the existing policy rather than opting for a new one.

A (alienation.) YOUR ANSWER

Alienation in insurance refers to the transfer of policy rights to another individual or entity. It does not involve discouraging policy replacement but rather the legal assignment of ownership.

B (concealment.) YOUR ANSWER

Concealment involves the intentional withholding of material information by the insured that could affect the issuance or terms of an insurance policy. It is not related to an agent's efforts to prevent policy replacement.

D (replacement.) YOUR ANSWER

Replacing an existing life insurance policy with a new one is a common practice. This choice contrasts with conservation, wherein the agent seeks to prevent policy replacement.

Conclusion

In the insurance realm, conservation specifically addresses an agent's actions to discourage an insured from replacing their current life insurance policy. By engaging in conservation, the agent aims to retain the existing policy rather than facilitating a switch to a new one, emphasizing continuity and stability in the insured's coverage.

An attempt by an agent to deter an insured from replacing an existing life insurance policy is called

Conservation.

Related Questions

Related Quizzes

How familiar were you with this question?

Report an Issue

Rate this Practice Test