What is the fiduciary duty of an agent towards their applicant or insured?

The fiduciary duty of an agent towards their applicant or insured encompasses various responsibilities grounded in trust and ethical conduct. One key aspect of this duty is to secure policies and forward premiums. This means that the agent must act in the best interest of the client, ensuring that the chosen insurance policies are properly secured and that any premiums received from the insured are handled appropriately and forwarded to the insurance company in a timely manner.

By fulfilling this responsibility, the agent demonstrates a commitment to safeguarding the client's financial interests and maintaining the integrity of the insurance process. This not only helps build trust with the client but also upholds the professional standards expected in the insurance industry.

While maintaining confidentiality and providing the least expensive options could also be considered part of an agent's overall responsibility, the essential fiduciary duty directly relates to the proper handling of policies and premiums. Rejecting claims without evaluation, on the other hand, contradicts the concept of fiduciary duty, as it goes against the obligation to act fairly and in the best interests of the client.