Regulation and Ethics Practice Question
Question
A student must apply the concept rather than define it only for the Life and Health Insurance License Exam involving variable annuity in Regulation and Ethics. Which option best reduces risk or error? (Item 53)
Answer choices
- A. The best answer is to choose the insurance answer that best reflects policy features, consumer protection, suitability, and ethical producer conduct for the variable annuity scenario.
- B. Apply a rule from a different domain even though the exam objective is different.
- C. Choose the option that sounds familiar even if it does not fit the scenario.
- D. Use the most complex option even when a simpler compliant action directly solves the problem.
Correct Answer
A. The best answer is to choose the insurance answer that best reflects policy features, consumer protection, suitability, and ethical producer conduct for the variable annuity scenario.
Explanation
The correct answer is A because variable annuity 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: easy
- Domain: Regulation and Ethics
- Objective: variable annuity