Key Takeaways
- Connecticut producers have fiduciary duties requiring them to act in the client's best interest
- The Golden Rule applies: treat clients as you would want to be treated
- Full disclosure of material facts and policy limitations is mandatory
- Producers must maintain professional competence through continuing education (24 hours/2 years)
- Ethical violations can result in license revocation, fines, and criminal prosecution
Connecticut Ethics & Professional Conduct
Core Ethical Principles
The Golden Rule in Insurance
Treat every client as you would want to be treated
This fundamental principle means:
- Recommend coverage you would buy for your own family
- Explain terms as clearly as you would want them explained to you
- Handle claims as promptly as you would expect
- Act with honesty and integrity in every interaction
Fiduciary Duties
As an insurance producer in Connecticut, you owe fiduciary duties to your clients:
| Duty | Description |
|---|---|
| Loyalty | Put client interests ahead of your own |
| Care | Act with reasonable skill and diligence |
| Disclosure | Reveal all material facts and conflicts |
| Confidentiality | Protect client information |
| Accountability | Take responsibility for your actions |
What Fiduciary Duty Means in Practice
- Recommend appropriate coverage - Match products to client needs, not commission levels
- Explain policy terms - Help clients understand what they're buying
- Disclose limitations - Be upfront about exclusions and conditions
- Avoid conflicts of interest - Or disclose them if unavoidable
- Act promptly - Respond to client needs and claims quickly
Professional Standards
Competence Requirements
Connecticut requires producers to maintain competence through:
| Requirement | Details |
|---|---|
| Continuing Education | 24 hours every 2-year license term |
| Ethics/Law/Regulation | Minimum 3 hours per renewal period |
| License-Specific | 6 hours in your license type |
| Renewal Date | Last day of your birth month (every 2 years) |
Maintaining Competence
- Stay current on product changes and updates
- Understand Connecticut insurance regulations
- Follow industry best practices
- Seek help when facing unfamiliar situations
Honesty and Integrity
What Honesty Requires
- Truthful statements - Never misrepresent coverage, costs, or limitations
- Accurate applications - Ensure all information is correct and complete
- Transparent pricing - Explain all costs and fees clearly
- Honest claims handling - Never encourage false or inflated claims
Integrity in Action
| Situation | Ethical Response |
|---|---|
| Client asks you to omit information on application | Refuse; explain legal consequences |
| Higher commission available for unsuitable product | Recommend appropriate coverage instead |
| Client unaware of important exclusion | Proactively explain the limitation |
| Mistake made on policy | Disclose error and correct immediately |
Consequences of Ethical Violations
Regulatory Actions
| Violation Level | Potential Consequences |
|---|---|
| Minor | Warning, required training |
| Moderate | Fines, probation, suspension |
| Serious | License revocation |
| Criminal | Prosecution, imprisonment |
Long-Term Impact
- Permanent record in NIPR and state databases
- Difficulty obtaining licenses in other states
- Reputation damage in the industry
- Civil liability to harmed clients
Exam Tip: On ethics questions, always choose the answer that puts client interests first, provides full disclosure, and complies with regulations - even if it means losing a sale or earning less commission.
A Connecticut producer is considering two insurance products for a client. Product A pays a higher commission but doesn't fully meet the client's needs. Product B pays less but is a better fit. What should the producer do?
How many hours of continuing education must Connecticut insurance producers complete per license renewal period?
A producer discovers they made an error on a client's policy after it was issued. What is the ethical response?