What must agents avoid to comply with ethical insurance practices?

Agents must avoid engaging in unfair trade practices to comply with ethical insurance practices. Unfair trade practices refer to deceptive, fraudulent, or unethical methods of competing in the insurance market. These practices can undermine trust in the industry, harm consumers, and lead to regulatory violations. By adhering to ethical standards and avoiding such practices, agents promote transparency, fairness, and accountability, which are essential for building a reputable and trustworthy insurance environment. This commitment helps protect clients’ best interests and fosters a positive relationship between agents, clients, and the insurers they represent.

The other options, such as offering discounts, providing legitimate policy details, and communicating policy changes, are generally considered acceptable and ethical practices in the insurance field. Offering discounts can be a legitimate incentive to attract clients; providing accurate policy details ensures that clients are well-informed; and communicating policy changes is crucial for keeping clients updated about their coverage.