What must an insurance agent provide if there is a conflict of interest?

When an insurance agent faces a conflict of interest, they are required to provide a disclosure of any conflicts of interest. This is crucial because transparency in the insurance industry helps maintain trust between the agent and the client. A conflict of interest can arise when the agent has a personal interest that might influence their professional judgment, potentially affecting the advice given to clients or the products recommended.

By providing a disclosure, the agent informs the client of any potential biases they may have, allowing the client to make more informed decisions. This requirement stems from both ethical considerations and regulatory standards set to ensure that clients’ interests are prioritized.

The other options do not directly address the need for transparency regarding conflicts of interest. For instance, providing a written summary of qualifications or details of their insurance company may be relevant information, but they do not serve the primary purpose of disclosing potential financial or personal conflicts. Similarly, sharing commission rates does not equate to disclosing conflicts of interest, as it does not directly indicate how the agent’s financial interests could affect their advice to the client.