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General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5

According to the ethical duties of insurance producers, when recommending a life insurance product, the agent's primary obligation is to:

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Answer & full 3-part explanation (select an option above, or peek)

Why C is correct

A core ethical duty of insurance producers is to place the client's interests ahead of their own. This means gathering information about the client's needs and financial situation, recommending coverage that genuinely fits those needs, and being honest about product features and limitations. This duty underlies suitability requirements for products such as annuities and guides every recommendation the producer makes. It also protects the agent, because a suitable sale is far less likely to produce a complaint or a regulatory action.

Why the other options are wrong

  • A) Maximizing commission at the client's expense violates the duty to place client interests first. Chasing the largest commission at the client's expense directly violates the producer's ethical duty of loyalty.
  • B) Convenience is not a valid basis for a recommendation. Suitability and client need come first. Paperwork convenience is not a legitimate factor; the recommendation must fit the client's actual needs.
  • D) Recommending only one insurer's products is acceptable only if it is disclosed and genuinely serves the client. The primary duty is to the client's needs. Selling only one insurer's products is acceptable only when disclosed and appropriate, but the client's needs come first.

Memory hook

Client first, always: the commission follows the right recommendation, not the other way around.

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