Florida Insurance Claims Adjuster License Practice Exam

What is it called when an agent represents to an applicant that a specific ancillary coverage or product is required by law with the purchase of motor vehicle insurance when it is not?

1. Churning

2. Rebating

3. Twisting

4. Sliding

The correct answer is: Sliding

D is the correct answer because sliding is when an agent presents false or misleading information to an applicant about the requirement of a specific ancillary coverage or product when purchasing motor vehicle insurance. Option A, churning, refers to an unethical practice of an agent convincing a policyholder to cancel a current insurance policy and it replaces with a new one from the same company. Option B, rebating, is when an agent provides an incentive or inducement to an applicant to purchase insurance. Option C, twisting, refers to when an agent convinces an applicant to surrender an existing policy to purchase a new one. These options are not relevant to the situation described in the question, making them incorrect answers.