Which statement about client information is correct?

The statement that all information about clients must be treated as confidential is accurate because confidentiality is a fundamental principle in the insurance industry and client relations. Protecting client information is essential for maintaining trust and ensuring compliance with privacy laws and regulations. It helps build a strong relationship between the agent and the client, as clients need to feel secure that their personal and financial information will be safeguarded.

In this context, treating client information as confidential fosters professionalism and ethical behavior among agents, which ultimately enhances the reputation of the insurance company. Agents are tasked with managing sensitive information, and by adhering to strict confidentiality standards, they align with industry best practices and legal obligations that prioritize the privacy rights of clients.

The incorrect statements present scenarios that do not accurately reflect industry practices or legal standards. For example, while agents must indeed recommend policies that are suitable for clients, the notion that agents should prioritize profitability for the company over client needs conflicts with ethical practices and fiduciary responsibility. Advertising regulations vary, but claims about prohibition or restrictions on stating company names must be approached with careful consideration of prevailing laws and practices.