Disclosing to the insured any subjectivities or contingencies that are contained in a quote to the insured.

• A. Upon request only
• B. Disclosing to the insured any subjectivities or contingencies
• C. Do not disclose
• D. Always disclose regardless of request

Answer: (B)

When you present a quote, you must be upfront about any subjectivities or contingencies that could affect coverage or price. If a quote is conditional—such as needing underwriting approval, verification of information, appraisal, or confirmation of certain facts—the insured needs to know that those conditions apply before finalizing coverage. This helps the insured understand that the quoted premium and terms aren’t guaranteed yet and what must happen for the policy to be issued.

Disclosing these details protects the insured from surprises, enables accurate comparison between quotes, and supports honest, transparent communication. It also aligns with ethical standards and typical insurer guidelines that require agents to reveal any factors that could change the outcome of the quote.

Why not rely on a request to disclose? Waiting for the insured to ask means important conditions might go unmentioned, leading to misunderstanding or misplaced trust. So the correct approach is to communicate all subjectivities or contingencies contained in the quote, proactively.