What must agents disclose when selling insurance?

When selling insurance, agents are required to disclose material information regarding coverage options, terms, and any potential conflicts of interest. This requirement is in place to ensure that consumers have a complete understanding of the insurance products they are considering. Agents must communicate key details that could influence a client's decision-making, such as the specific coverages included in a policy, any exclusions, the limits of coverage, and how different options might impact their financial protection.

Transparency is essential in the insurance market, as it helps clients make informed choices that align with their individual needs and circumstances. By providing comprehensive information, agents foster trust and enable consumers to evaluate policies effectively, compare them with others, and avoid unanticipated gaps in coverage.

The focus on material information ensures that clients are not just aware of costs like premiums, but also understand the implications of different coverage options and the potential for any conflicts of interest that may arise during the sales process. This holistic approach to disclosure is a fundamental aspect of ethical insurance practice.