Question

Legally speaking, a producer has a __________ duty when handling life insurance premiums and applications for an insurer.

Answer 1

Answer:

The Correct answer is B.

Explanation:

A Producer in an Insurance Company is a Consultant to members of the public in need of Insurance.  A Producer is a professional Insurer/Agent who goes to markets and brokers to trade for the insured.  

One of the duties of a producer is to ensure that he acts in fiduciary when handling premiums and applications for the insured.  Other duties include; to monitor the increase in sales on behalf of existing clients,  a Producer should be innovative by bring up new strategies to improve its clientele etc.

Fiduciary mean to " act in good faith". A Producer should always act in good faith by representing the interest of the insured at all times and to carefully monitor insurance policies.