How is coercion defined in the context of insurance sales?

In the context of insurance sales, coercion refers to the act of forcing or manipulating a client into making a decision. Insisting on a specific insurance provider as a condition for a loan exemplifies coercion because it pressures the client to choose a specific option that may not necessarily be in their best interest or may limit their choices. Coercion undermines the principle of informed consent, as it restricts the client's ability to explore other options freely.

Other scenarios, such as offering lower rates for multiple policies or encouraging clients to buy excess coverage, typically involve promotional strategies or risk management practices rather than coercive tactics. Providing multiple quotes for comparison is a standard practice that empowers clients, allowing them to make informed choices based on their preferences and needs. Thus, the insistence on a specific provider linked to a loan condition directly showcases coercion in insurance sales.