What must an insurance professional disclose when there’s a potential conflict of interest?

An insurance professional is obligated to disclose the nature of any potential conflict of interest to ensure transparency and enable the client to make informed decisions. This principle is rooted in ethical practice and is fundamental to maintaining trust in the client-professional relationship. By clearly articulating the nature of the conflict, the professional empowers the client to understand how their advice or recommendations may be influenced by the potential conflict, thereby reinforcing the client’s autonomy in decision-making.

This approach prioritizes the client’s right to be informed and ensures that they can assess whether they wish to proceed with the advice given, seek further information, or consider alternative options. Transparency in revealing conflicts of interest aligns with ethical standards set forth in the insurance and financial services industries, which emphasize the importance of professional integrity and accountability.