suitability - Correct Answer The process of determining whether a particular insurance or annuity product is an appropriate purchase for an applicant based on the applicant's needs and financial condition.
best interest standard - Correct Answer A legal requirement that recommendations must ...
LOMA 291 Module 2 Lesson 2 || With
Solutions
suitability - Correct Answer The process of determining whether a particular insurance or annuity
product is an appropriate purchase for an applicant based on the applicant's needs and financial
condition.
best interest standard - Correct Answer A legal requirement that recommendations must only consider
the consumer's interest and not the interests of the financial institution or financial professional.
Regulation Best Interest - Correct Answer A Securities and Exchange Commission (SEC) package of rules
and interpretations, effective June 30, 2020, designed to enhance the quality and transparency of retail
investors' relationships with investment advisers and broker-dealers. Also known as Reg BI.
data analytics - Correct Answer The practice of applying analytical techniques to large amounts of raw
data in order to draw conclusions and make business decisions.
business rules engine - Correct Answer Software that automatically applies rules to data to reach a
decision.
exception-based underwriting - Correct Answer Electronic underwriting that automatically accepts
applications that meet certain well-defined criteria and refers the rest for further evaluation by a human
underwriter.
antiselection - Correct Answer The tendency of people who believe they have a greater-than-average
likelihood of loss to seek insurance protection to a greater extent than do those who believe they have
an average or a less-than-average likelihood of loss. Also known as adverse selection.
field underwriting - Correct Answer The process that occurs when the financial professional gathers
initial information about the applicant and proposed insured and makes an initial assessment as to
whether they are likely to be approved for a specific type and amount of coverage.
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