Arkansas Life and Health Insurance Practice Exam

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All of the following are requirements of testimonials, except:

  1. A testimonial must be credible

  2. A testimonial must not be exchanged for compensation

  3. A testimonial must be applicable to the product

  4. A testimonial must be genuine

The correct answer is: A testimonial must not be exchanged for compensation

In the insurance industry, testimonials are used to showcase positive experiences from clients who have used the product or service. It is important for testimonials to be credible, genuine, and applicable to the product being promoted. However, the option stating that "A testimonial must not be exchanged for compensation" is not a requirement. In some cases, individuals providing testimonials may receive compensation or rewards for their endorsement. This compensation should be transparent and disclosed to maintain credibility, but it does not necessarily make the testimonial invalid.

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