Massachusetts Life Producer Practice Exam

What action could result in a producer being found guilty of coercion?

1. Providing accurate policy information

2. Intimidating a client to purchase insurance

3. Offering discounts on premiums

4. Encouraging clients to compare policies

The correct answer is: Intimidating a client to purchase insurance

A producer could be found guilty of coercion if they intimidate a client into purchasing insurance. Coercion involves compelling someone to act against their will or judgment, often by using threats or pressure. In the context of selling insurance, this means that if a producer uses intimidation tactics—such as making the client feel scared, pressured, or threatened—they are undermining the client's ability to make a voluntary and informed decision about purchasing insurance. This type of behavior is unethical and violates principles of fair market practices, demonstrating a clear abuse of power by the producer in the client relationship. The other options, such as providing accurate policy information, offering discounts on premiums, and encouraging clients to compare policies, are standard and ethical practices in the insurance industry. These actions promote informed decision-making without pressuring the client, thereby fostering trust and transparency rather than fear or intimidation.