West Virginia Insurance Practice Exam

Guaranteeing that policy premiums will always remain the same represents an ethical violation in the context of selling insurance because it implies a level of certainty and permanence that is not typically possible with insurance products. Premiums are subject to change based on various factors, including underwriting guidelines, changes in risk assessment, and company policies. Offering such a guarantee can mislead clients into believing that their insurance costs are fixed, which could ultimately result in financial issues for clients if their premiums do increase.

In ethical terms, this misrepresentation can damage the trust between the agent and the client. Insurance agents are expected to provide accurate information and help clients understand the nature of the products they are purchasing, including the possibility of future changes. Therefore, making an absolute guarantee about premiums is not only misleading but could also violate regulations meant to protect consumers.

The other choices present scenarios that either do not violate ethical standards or are more about standard practices in the insurance industry, such as exchanging contact information for legitimate business purposes or offering educational materials that benefit clients.