Which of the following reflects the ethical duty of brokers regarding client information?

Prepare for the General Insurance Level 1 Exam with flashcards and multiple choice questions. Each question includes hints and explanations to help you succeed. Ace your exam now!

Confidentiality is a fundamental ethical duty that brokers hold regarding client information. This duty entails safeguarding the personal and sensitive information of clients from unauthorized access or disclosure. Brokers have access to various types of client data, including financial details, insurance history, and personal identifiers. Maintaining confidentiality ensures that this information remains secure and is only shared with authorized parties as necessary for providing services or fulfilling legal obligations.

By upholding confidentiality, brokers not only comply with ethical standards but also foster trust with their clients. Trust is crucial in the broker-client relationship, as clients need to feel secure that their information will not be misused or disclosed without their consent. Adhering to confidentiality promotes professionalism and reinforces the broker’s reputation in the industry.

In comparison, other options like fee disclosure, integrity, and public relations do not specifically address the handling of client information. While these aspects are important in the overall practice of insurance and building relationships with clients, confidentiality specifically targets the ethical principle of protecting client information.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy