The correct answer is D. All of the above.
A code of conduct is a set of rules that guide the behavior of members of a profession or organization. It is not optional for a successful agent to follow a code of conduct, as doing so is essential to maintaining the trust of clients and colleagues. Ethical standards may sometimes conflict with the drive to do good volume of business, but it is important for agents to remember that their primary responsibility is to their clients. Persistency of policies is the likelihood that a policy will remain in force for the full term. It is affected by a number of factors, including the quality of the product, the service provided by the agent, and the financial stability of the insurer. While agents and insurers can take steps to improve persistency, it is ultimately beyond their control.
Here are some additional details about each option:
- A code of conduct is a set of rules that guide the behavior of members of a profession or organization. It is not optional for a successful agent to follow a code of conduct, as doing so is essential to maintaining the trust of clients and colleagues. A code of conduct typically includes rules on such matters as honesty, integrity, confidentiality, and conflict of interest.
- Ethical standards are principles that guide the behavior of individuals and organizations. They are often based on moral values such as fairness, justice, and respect. Ethical standards may sometimes conflict with the drive to do good volume of business. For example, an agent may be tempted to make a sale by misrepresenting the terms of a policy or by failing to disclose important information to a client. However, it is important for agents to remember that their primary responsibility is to their clients. They should always act in the best interests of their clients, even if it means sacrificing some potential income.
- Persistency of policies is the likelihood that a policy will remain in force for the full term. It is affected by a number of factors, including the quality of the product, the service provided by the agent, and the financial stability of the insurer. While agents and insurers can take steps to improve persistency, it is ultimately beyond their control. For example, an agent can provide excellent service to clients and make sure that they understand the terms of their policies. However, if the insurer is not financially stable, clients may be more likely to cancel their policies.