Which of the following is required by ethics and fiduciary duties?

• A. Disclose material facts.
• B. Hide conflicts of interest.
• C. Ignore state regulations.
• D. Never discuss policy terms.

Answer: (A)

Disclosing material facts is required because ethics and fiduciary duties center on acting in the client’s best interest with honesty and transparency. A fiduciary must provide all information that a reasonable person would consider important to making an informed decision about a policy—such as costs, benefits, exclusions, risks, and any conflicts of interest that could influence the advice given. This openness helps prevent misrepresentation and protects the client from surprises later on. In contrast, hiding conflicts of interest breaches trust, ignoring state regulations can lead to illegal conduct and penalties, and never discussing policy terms prevents the client from understanding exactly what is being offered. So, full disclosure of material facts embodies the duty to be truthful and serve the client’s best interest.