The correct answer is D. The agent has to show his licence to his prospect-customer on demand.
Option A is incorrect because it is not always in the best interest of the client for the agent to share his commission. The agent may be more likely to sell a policy that is not in the client’s best interest if he is sharing the commission.
Option B is incorrect because sharing a part of the agent’s commission is not always a trade practice. In some cases, it may be considered unethical for the agent to share his commission.
Option C is incorrect because the agent is obliged to disclose his commission to his client, even if the client does not ask. This is because the client has a right to know how much the agent is making from the sale of the policy.
Option D is correct because the agent is required by law to show his license to his prospect-customer on demand. This is to ensure that the customer is dealing with a licensed and qualified agent.