The correct answer is: B. Insurance agent should share the commission by way of rebate.
An insurance agent is a person who sells insurance policies on behalf of an insurance company. They are required to be licensed by the state in which they operate. Insurance agents must disclose their license status to customers upon request. They must also indicate the premium to be charged for the insurance policy.
It is not illegal for an insurance agent to share the commission they earn with a customer. However, it is not required by law. In fact, some insurance companies have policies that prohibit their agents from sharing commissions.
If an insurance agent offers to share their commission with a customer, it is important for the customer to understand that this is not a requirement. The customer should also be aware that the agent may be trying to make a sale by offering a discount.
If a customer is interested in purchasing an insurance policy, they should shop around and compare rates from multiple agents. They should also ask about the commission structure and whether the agent is willing to share their commission.
Here is a brief explanation of each option:
- A. Insurance agent should indicate the scale of commission if asked by the customer. This is correct. An insurance agent is required to disclose the scale of commission they earn if asked by the customer.
- B. Insurance agent should share the commission by way of rebate. This is incorrect. It is not illegal for an insurance agent to share the commission they earn with a customer, but it is not required by law.
- C. Insurance agent should disclose his licence on demand. This is correct. An insurance agent is required to disclose their license status to customers upon request.
- D. Insurance agent should indicate the premium to be charged. This is correct. An insurance agent must indicate the premium to be charged for the insurance policy.