Fronting in the insurance context is best described as which practice?

• A. Letting someone use my licence to sell insurance
• B. Selling policies to minors
• C. Misrepresenting policy features
• D. Rebating premiums

Answer: (A)

Fronting is when a licensed person allows someone else to use their licence to sell insurance. In practice, the licensed producer is the one whose licence is on file, but the actual selling activity is carried out by an unlicensed person, often a family member. This arrangement aims to bypass licensing requirements or to obtain commissions without proper qualification and oversight. Regulators view fronting as a serious risk to consumers because it undermines the protection that comes from having a properly licensed and accountable producer. The other options describe different improper practices (such as misrepresentation or rebating), but they do not capture the specific issue of using a licence to let another person sell insurance.