State RegulationsNC specificDifficulty 1/5
Under 11 NCAC 4 .0423, North Carolina's ethical standards for producers require that a producer:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under 11 NCAC 4 .0423, North Carolina's ethical standards require producers to deal honestly and in good faith with clients and applicants, avoiding misrepresentation, concealment, and self-dealing. The standard operates alongside the unfair-trade-practice rules (such as the rebating ban in G.S. 58-33-85) and supports license discipline for producers who put commissions ahead of client interests.
Why the other options are wrong
- A) Steering clients to whichever product pays the producer the highest commission breaches the good-faith standard.
- B) State privacy law restricts the disclosure of an applicant's personal information; it may not be shared freely.
- D) Rebating is prohibited under G.S. 58-33-85 and cannot be justified as a courtesy.
Memory hook
Good faith first — commissions never outrank the client.