What must insurance agents disclose when selling a policy?

When selling a policy, insurance agents are required to disclose any potential conflicts of interest. This obligation is rooted in the principle of transparency and ethics in the insurance industry, ensuring that clients are fully informed about any factors that may influence the agent's recommendations or actions. If an agent has interests that could compromise their objectivity—such as receiving a higher commission for selling certain products—it is essential for them to disclose these to clients. This practice helps to build trust and allows clients to make informed decisions without being misled by the agent's own interests.

While the other options might seem relevant, they do not universally apply to the requirements for disclosure. For instance, full commission structures and third-party partnerships might be pertinent in different scenarios, but they are not standard disclosure mandates that agents are universally obligated to communicate. Similarly, detailing all previous claims made by the insurer may not be directly required from the agent during the sales process. Ultimately, disclosing potential conflicts of interest is crucial in maintaining ethical standards and protecting consumers in the insurance marketplace.