Which of the following actions is NOT considered sliding?

Which of the following actions is NOT considered sliding?

• A. Telling the applicant that coverage is required by law when it is not
• B. Charging for coverage without informed consent
• C. Including a required charge in the policy premium
• D. Offering commission as an inducement to buy insurance

Answer: (D)

The action that is NOT considered sliding is offering commission as an inducement to buy insurance. Sliding refers specifically to the practice of convincing a customer to purchase insurance coverage that they do not need or want, often by misrepresenting the necessity or benefits of the coverage. When an agent offers a commission as an inducement, they are not misrepresenting the coverage itself or pushing unnecessary products onto the client. Instead, they are simply incentivizing their service in a way that is typically acceptable within the industry, provided that the full information about the products and commissions is presented transparently to the client. In contrast, the other options involve deceptive practices that are clearly part of sliding. For example, misinforming an applicant about legal requirements to make a sale, charging for coverage without ensuring the customer understands what they are paying for, or including hidden charges in the premium all undermine the client's informed consent and indicate a lack of transparency, thus qualifying as sliding.

The action that is NOT considered sliding is offering commission as an inducement to buy insurance. Sliding refers specifically to the practice of convincing a customer to purchase insurance coverage that they do not need or want, often by misrepresenting the necessity or benefits of the coverage.

When an agent offers a commission as an inducement, they are not misrepresenting the coverage itself or pushing unnecessary products onto the client. Instead, they are simply incentivizing their service in a way that is typically acceptable within the industry, provided that the full information about the products and commissions is presented transparently to the client.

In contrast, the other options involve deceptive practices that are clearly part of sliding. For example, misinforming an applicant about legal requirements to make a sale, charging for coverage without ensuring the customer understands what they are paying for, or including hidden charges in the premium all undermine the client's informed consent and indicate a lack of transparency, thus qualifying as sliding.