Which of the following is considered an unfair practice by agents acting in good faith?

• A. Tied selling
• B. Churning & twisting
• C. Premium rebating
• D. All of the above

Answer: (D)

In this ethics area, actions that push a client toward a product or outcome that isn’t truly in their best interest are considered unfair, even if the agent believes they’re helping. Tied selling restricts the client’s choice by forcing purchase of another product to obtain what they want, which can lead to a less suitable overall solution. Churning and twisting involve replacing or repeatedly modifying policies mainly to generate higher commissions, which can expose the client to higher costs or worse terms and undermines fair dealing. Premium rebating—giving back part of the premium or offering incentives to sway the purchase—creates improper influence and distorts the true value of the product, and it is typically illegal in many jurisdictions.

Because each of these practices compromises fair dealing or misleads the client, all of the above are regarded as unfair practices, even when the agent acts in good faith.