State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
A life and disability insurance analyst charges a consumer a flat fee to analyze a proposed life insurance policy and then accepts a commission from the insurer for recommending its purchase. Under Section 1848, this practice is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 1848 limits the compensation of life and disability insurance analysts. The analyst serves the consumer's interest by analyzing policies for a fee and is not supposed to profit from steering the consumer to a particular insurer's product through commissions. Accepting both an analysis fee and a sales commission creates a conflict that the compensation restrictions are designed to prevent.
Why the other options are wrong
- B) Consumer agreement does not override statutory compensation limits for analysts.
- C) Analysts analyze policies; they do not sell them or earn sales commissions.
- D) The compensation restriction is set by California Insurance Code Section 1848.
Memory hook
Analyst takes a fee, not a bribe. Section 1848 caps the analyst's compensation and bans commission conflicts.