What does coercion in insurance transactions refer to?

Coercion in insurance transactions specifically pertains to the act of forcing or compelling an individual to engage in a transaction against their will or better judgment. In the context of insurance, this could mean pressuring a client to purchase a policy or to agree to specific terms under threat or duress. Such practices are unethical and illegal, as they violate the fundamental principle of free choice in financial decisions.

Acceptable business practices in the insurance industry are focused on providing clients with complete information and allowing them to make informed decisions without pressure. Offering discounts, explaining policy details, and negotiating premium rates are legitimate business strategies that do not involve coercion. These actions emphasize transparency and client understanding, which are essential for building trust in the client-agent relationship.