Which of the following actions is considered a violation of insurance ethical practices?

Providing unverified information is indeed a violation of ethical practices in the insurance industry. Ethical guidelines dictate that insurance professionals must ensure that the information they provide to clients is accurate, reliable, and substantiated. Sharing unverified or false information can mislead clients, impact their decision-making process, and undermine the trust essential to the client-agent relationship.

In an ethical framework, professionals are responsible for maintaining transparency and ensuring that all communicated information is factually sound. Providing unverified information can lead to potential harm, not just to a client’s financial well-being but also to the integrity of the insurance profession overall. This aspect of professionalism is critical in fostering a positive reputation and maintaining regulatory compliance within the industry.

Actions such as offering clients lower premiums, advising them to compare policies, or thoroughly answering their questions are generally viewed as proactive and beneficial practices. They enhance client relationships and promote informed decision-making. In contrast, the act of communicating unverified information breaches ethical standards and is justifiably considered a violation.