New York Insurance Exam Practice Question
What must an agent disclose to a client when selling an insurance policy?
Correct Answer: B
Rationale: When selling an insurance policy, it's essential for an agent to disclose the insurer's financial rating. This information helps clients assess the insurer's stability and ability to pay claims, ensuring informed decision-making.
Option A, the agent's commission rate, is not typically required for disclosure as it pertains more to the agent's compensation than the policy's value. Option C, sharing the client’s medical history with other insurers, violates privacy laws and ethical standards. Option D, the agent's personal financial status, is irrelevant to the client’s insurance decision and does not impact the policy's terms or reliability.
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