State RegulationsNC specificDifficulty 2/5
Under the ethical standards the Commissioner enforces for North Carolina producers, which conduct is expected of a producer serving a client?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under the ethical standards rule, 11 NCAC 4 .0423, a North Carolina producer is expected to act with honesty and integrity and to deal fairly with both the client and the insurer. The producer occupies a position of trust, so the rule requires balanced judgment rather than self-dealing, disclosure breaches, or unsupported promises about future results.
Why the other options are wrong
- A is wrong because placing business based on the producer's commission rather than the client's needs is a conflict of interest, not ethical conduct.
- B is wrong because disclosing one client's confidential information to another violates the duty of confidentiality.
- C is wrong because guaranteeing future dividends or policy performance is a misrepresentation; dividends and results are not guaranteed.
Memory hook
Ethics rule in one line: honest, fair, and balanced between client and insurer.