Which statement about life insurance agents is true?

The statement regarding life insurance agents treating all client information as confidential is indeed a fundamental principle in the insurance industry. Confidentiality ensures that sensitive personal and financial information provided by clients is protected from unauthorized access or disclosure. This ethical obligation fosters trust between the agent and the client, allowing clients to feel secure in sharing their personal details essential for evaluating their insurance needs.

In many jurisdictions, there are legal requirements related to data protection that mandate confidentiality as well. Violating this principle can have serious repercussions, including legal action against the agent and damage to the company's reputation. By prioritizing confidentiality, agents uphold professional standards and comply with regulations designed to protect consumers.

Other options provided either misrepresent industry practices or do not accurately reflect the responsibilities of life insurance agents. For instance, restrictions on advertising by agents, company profit orientation in recommendations, and limitations on stating their company’s name in advertisements differ widely in application and are governed by regulatory guidelines, which ultimately do not take precedence over the need for client confidentiality.