What is an insurance agent's fiduciary duty?

An insurance agent's fiduciary duty is to act in the best interests of their client. This means that the agent is obligated to place the needs, interests, and welfare of the client above their own. They must provide honest and complete information about insurance products and help clients make informed decisions regarding their coverage options.

This duty involves maintaining a high level of professionalism and integrity, ensuring that the products recommended are suitable for the client’s specific circumstances. By prioritizing the client’s needs, the agent fosters trust and builds a long-term relationship. This is fundamental in the insurance industry, where agents are often entrusted with significant financial decisions that can impact their clients' financial security.

Other choices do not accurately reflect the fiduciary duty of an insurance agent. Minimizing commissions or selling as many policies as possible may serve the agent's interest but do not align with the responsibility to put the client's best interests first. Similarly, providing the lowest premiums available is not enough on its own if the coverage doesn't meet the client's needs or if it's not in their best interest overall.