New York State Life Insurance Exam Questions Practice Question
A fiduciary duty involves which of the following?
Correct Answer: A
Rationale: A fiduciary duty encompasses the obligation to act in the best interests of clients, which includes the proper handling of all client premiums (Option A). This ensures that clients’ funds are managed responsibly and ethically.
Option B, underwriting all applications, is not a fiduciary duty but rather a specific task in the insurance process. Option C, approving or disapproving the policy, pertains to decision-making authority rather than fiduciary responsibility. Option D, setting premium amounts, involves pricing strategies and does not directly relate to the fiduciary obligation to prioritize client interests.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now