In the real estate business the broker has a fiduciary responsibility to the seller.
The real estate agent normally represents the seller and also has a fiduciary responsibility to the seller.
However, if the agent is an Accredited Buyer's Representative (ABR) the agent has a fiduciary relationship to the buyer.
I have searched and read everything on the this forum to find a definitive answer as to the fiduciary responsibility between a life insurance agent and a life insurance buyer. If there is a definitive answer on the this forum I can't find it.
I have searched google to find the answer. It seems the answer depends on the author of the article you are reading. And, that applies to articles written by lawyers who you would think would have the definitive, legal answer. Of course, that isn't true because lawyers earn their money by being able to assert both sides of a legal question. So much for intellectual honesty!
Then, come to find out on the federal level it's still an open question because of "pending decisions".
So, what is the answer?
In the life insurance industry, legally, to which party does an insurance agent (with no special designations) owe a fiduciary responsibility:
A) The carrier
B) The FMO/IMO (who is a legal agent of the carrier)
C) The buyer
D) To themselves, the agent.
Though I know it's not the correct answer, "D" seems to be the case when you read about lawsuits where an agent enriched themselves by selling a high commission contract instead of a writing a lower commission contract that would have been more beneficial to the insured. And, for every one you read about, there are probably dozens that never come to the attention of the courts.
I understand a law or regulation requiring a fiduciary relationship between two parties can't stop unethical, dishonest agents. But, it's good knowing if they get caught violating any such law they can be held accountable and could lose their license to earn their livelihood.
tinman
The real estate agent normally represents the seller and also has a fiduciary responsibility to the seller.
However, if the agent is an Accredited Buyer's Representative (ABR) the agent has a fiduciary relationship to the buyer.
I have searched and read everything on the this forum to find a definitive answer as to the fiduciary responsibility between a life insurance agent and a life insurance buyer. If there is a definitive answer on the this forum I can't find it.
I have searched google to find the answer. It seems the answer depends on the author of the article you are reading. And, that applies to articles written by lawyers who you would think would have the definitive, legal answer. Of course, that isn't true because lawyers earn their money by being able to assert both sides of a legal question. So much for intellectual honesty!
Then, come to find out on the federal level it's still an open question because of "pending decisions".
So, what is the answer?
In the life insurance industry, legally, to which party does an insurance agent (with no special designations) owe a fiduciary responsibility:
A) The carrier
B) The FMO/IMO (who is a legal agent of the carrier)
C) The buyer
D) To themselves, the agent.
Though I know it's not the correct answer, "D" seems to be the case when you read about lawsuits where an agent enriched themselves by selling a high commission contract instead of a writing a lower commission contract that would have been more beneficial to the insured. And, for every one you read about, there are probably dozens that never come to the attention of the courts.
I understand a law or regulation requiring a fiduciary relationship between two parties can't stop unethical, dishonest agents. But, it's good knowing if they get caught violating any such law they can be held accountable and could lose their license to earn their livelihood.
tinman