Your agent is liable to you for the following reasons

• misrepresentation of coverage
• improper instructions in the event of a claim
• failure to secure coverage for you
• failure to secure proper coverage for you
• calculation errors
• mishandling of funds
• failure to act in a timely manner
• breach of confidentiality

Your advisor is required to disclose the following to you:

• the names of all insurers and other financial services suppliers represented
• the name in writing of the insurer issuing the policy
• that compensation will be received from the insurer
  • no need to disclose the amount
• how you can to cancel, redeem or surrender a policy

You can expect a good advisor to

• make it clear that they are acting as an agent and identify the insurer
• be diligent in providing the right advice
• use a written letter of engagement
• act ethically

Ethical Conduct

The three components of ethical conduct are

1. know your client
2. maintain privacy and confidentiality
3. fiduciary duty

Ethical conduct exceeds minimum legal requirements.

Highest Ethics

The highest ethics are required from your advisor when

• projecting product performance, since results are heavily influenced by the assumptions used
  • use realistic assumptions for investment growth
  • show alternate scenarios (e.g., lower projected interest rates)
  • clearly indicate guaranteed elements
  • for nonguaranteed elements, be aware that figures are for illustration purposes and actual results may vary
• completing the policy application
  • you (as the applicant) are responsible for the answers once you sign the policy application but errors can cause insurer to
    • rescind the policy or
    • deny a claim due to material misrepresentation
  • act quickly during the application and underwriting process since the health of the proposed life insured can change quickly → higher premiums or decline