State RegulationsVA specificDifficulty 2/5
To persuade a prospect to switch policies, a Virginia producer states that the prospect's current insurer is financially shaky and misdescribes that insurer's policy terms to make his own product look superior. Under the solicitation and sales presentation rules, which assessment is correct?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Virginia's solicitation and sales presentation framework under 14 VAC 5-41 requires producers to conduct sales honestly, and misdescribing a competitor's financial condition or the terms of another insurer's policy is misrepresentation — prohibited conduct whether it appears in an advertisement or a face-to-face solicitation. Persuasion is legitimate; false statements about another insurer and its products are not. A producer who wants to compare policies must do so accurately.
Why the other options are wrong
- A) Switching prospects is legitimate marketing, but the method matters — false statements about another insurer are outside what solicitation rules permit.
- B) Subjective belief is no defense to misdescribing a policy's terms; the standard is accuracy, not sincerity, under 14 VAC 5-41.
- C) A prospect cannot waive the prohibition; the rules govern the producer's conduct and are not displaced by a signed acknowledgment.
Memory hook
Sell your policy on its merits — never on a made-up story about the other guy's.