Annuities and Underwriting Practice Question
Question
A student must apply the concept rather than define it only for the Life and Health Insurance License Exam involving suitability in Annuities and Underwriting. Which statement is most accurate for exam purposes? (Item 54)
Answer choices
- A. Rely on informal custom instead of the applicable rule, control, or standard.
- B. The best answer is to choose the insurance answer that best reflects policy features, consumer protection, suitability, and ethical producer conduct for the suitability scenario.
- C. Skip verification because the previous case had the same answer.
- D. Document nothing because documentation could create follow-up questions.
Correct Answer
B. The best answer is to choose the insurance answer that best reflects policy features, consumer protection, suitability, and ethical producer conduct for the suitability scenario.
Explanation
The correct answer is B because suitability is tested by asking candidates to choose the insurance answer that best reflects policy features, consumer protection, suitability, and ethical producer conduct. The distractors reflect common exam mistakes: ignoring context, using informal shortcuts, skipping verification, or applying a rule from the wrong domain.
Question details
- Difficulty: medium
- Domain: Annuities and Underwriting
- Objective: suitability