Primerica Life Producer Exam Practice Test 2025 – Complete Prep Resource

Question: 1 / 400

What regulates unfair trade practices such as rebating?

Federal law only

State insurance regulations

State insurance regulations primarily oversee unfair trade practices like rebating. Each state has its own insurance department that establishes rules and standards designed to ensure fair competition and protect consumers in the insurance market. These regulations specifically address practices deemed unfair or deceptive, such as rebating, which involves offering something of value to induce a client to purchase insurance.

State laws are crucial because they vary significantly, allowing states to tailor their regulations to protect consumers while maintaining a fair playing field for insurance providers. Federal laws and consumer protection laws might cover broader issues but do not directly regulate these specific trade practices within the insurance industry. Insurance company policies can guide internal practices but do not have the authority to regulate industry standards across all companies.

Get further explanation with Examzify DeepDiveBeta

Insurance company policies

Consumer protection laws

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy