Question

What might happen if an insurance company offers significantly lower commission rates than its competitors?

a.

Agents may shift to other companies

b.

Agents may be more motivated to sell the company's products

c.

Premium rates may increase

d.

Government may impose penalties

Answer: (a).Agents may shift to other companies Explanation:Lower commission rates compared to competitors may lead agents to move to other companies offering higher commissions, impacting the company's distribution force.

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Q. What might happen if an insurance company offers significantly lower commission rates than its competitors?

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