Question

The requirement that agents must account for all insurance funds collected, and without the expressed consent of the insurance company(ies) are not permitted to commingle those funds with their own funds, is known as_______.
A Accepted accounting principal.
B Fiduciary responsibility.
C Premium accountability.
D Fiscal responsibility.

Answer 1

Answer:

B

Explanation:

The requirement that agents must account for all insurance funds collected, and without the expressed consent of the insurance company(ies) are not permitted to commingle those funds with their own funds, is known as fiduciary responsibility

Being a fiduciary responsible requires being bound ethically to act in the other's best interests. A fiduciary might be responsible for financesmanaging the assets of another person, or of a group of people,

Answer 2

Answer: The correct answer is B.

Fiduciary responsibility

Explanation:

A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties. Typically, a fiduciary prudently takes care of money or other assets for another person.

A fiduciary responsibility is an obligation to act in the best interest of another party that is a person acting in a fiduciary capacity is held to a high standard of honesty and full disclosure in regard to the client and must not obtain a personal benefit at the expense of the client

Money collected with respect to an insurance transaction must be held in a position of trust by the agent