State RegulationsNC specificDifficulty 2/5
Under 11 NCAC 4 .0423, which duty applies to a North Carolina producer's professional conduct?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under 11 NCAC 4 .0423, producers are held to ethical standards requiring fair and honest dealings with clients, including avoiding misrepresentation and protecting client interests in the sale of insurance. Violations expose the producer to disciplinary action by the Commissioner of Insurance.
Why the other options are wrong
- A) Ethical standards and privacy principles prohibit freely sharing client information with unaffiliated marketers.
- B) Premium handling must follow statutory methods; verbal client permission does not authorize improper handling.
- D) Coverage changes require proper client authorization, not prior written consent from the Commissioner.
Memory hook
Fair, honest, no misrepresentation — the producer's ethical floor.