Which practice is ethical in conflicts of interest when placing a customer's insurance?

• A. Not disclosing compensation received from any source
• B. Fully disclosing all compensation received from any source upon request
• C. Locking up markets
• D. Placing with the insurer that offers the highest commission

Answer: (B)

Transparency about compensation when placing a customer's insurance helps manage conflicts of interest. When a broker could benefit from a particular insurer, the client needs to know about that potential bias. Fully disclosing all compensation received from any source upon request gives the client the information needed to judge whether recommendations are driven by the client's needs or by money. This practice supports trust and aligns with ethical duties to put the client first and with typical regulatory expectations. Not disclosing compensation hides a conflict and can lead to biased recommendations; locking up markets or choosing the insurer with the highest commission ignores the client's best interests and undermines fairness.