Question

Why is unethical behavior detrimental in the insurance business?

a.

It leads to higher premium rates.

b.

It often results in underwriting losses.

c.

It increases the insurer's profitability.

d.

It encourages transparency in operations.

Posted under IC38 Life Insurance Agent Exam

Answer: (b).It often results in underwriting losses. Explanation:Unethical behavior in the insurance business can lead to underwriting losses because it may involve providing wrong information or not catering to the specific needs of prospects, which can have financial consequences.

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Q. Why is unethical behavior detrimental in the insurance business?
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