What does an agent's fiduciary duty imply?

An agent’s fiduciary duty involves an ethical and legal obligation to act in the best interest of their clients. This means that the agent must prioritize the needs and welfare of the client above their own interests or financial gain. The relationship built on fiduciary duty requires the agent to provide honest and transparent guidance, ensuring that any advice or recommendations made align with the client's goals and circumstances.

This duty is fundamental in establishing trust between the agent and the client, fostering a professional relationship where the client can have confidence that their agent is working solely for their benefit. It encompasses responsibilities such as full disclosure of relevant information, avoiding conflicts of interest, and acting competently and diligently. In the context of insurance, it includes recommending policies that best meet the clients' needs rather than those that simply provide the highest commissions for the agent.