ACME Bank would like its tellers to help sell insurance products to new and existing customers. The tellers would refer customers to personal bankers who have insurance licenses from the state. The bank would like to reward tellers by giving them a small percentage of the commission for each policy sold where the sale resulted from a referral. Which of the following statements presents ACME's biggest concern in complying with the Consumer Protection in Sales of Insurance regulation?

Question

Quizplus · Accepted Answer

The biggest concern for ACME in complying with the Consumer Protection in Sales of Insurance regulation is that tellers should not be rewarded only when the referral results in a sale. This is because the regulation requires that any rewards or incentives given to employees for insurance sales must be based on more than just the sale itself, such as the quality of the advice given to the customer. Simply rewarding tellers for referrals that result in a sale can create a conflict of interest and potentially lead to unethical behavior. Therefore, ACME should structure their incentive program in a way that ensures that the tellers are providing high-quality advice and not just referring customers to personal bankers to earn a commission.

ACME Bank Would Like Its Tellers to Help Sell Insurance