Key Takeaways
- Indiana producers have fiduciary duties to act in the best interest of clients
- Producers must disclose compensation arrangements and conflicts of interest
- Premium funds must be handled according to strict requirements
- Producers must maintain accurate records for required retention periods
- Continuing education includes mandatory ethics training
Last updated: January 2026
Producer Conduct and Fiduciary Duties
Indiana insurance producers have legal and ethical obligations to their clients and the public.
Fiduciary Duties
A fiduciary is someone who acts in another's best interest. Insurance producers owe fiduciary duties to their clients:
Key Duties
| Duty | Description |
|---|---|
| Loyalty | Put client's interests first |
| Disclosure | Reveal all material information |
| Competence | Maintain professional knowledge |
| Confidentiality | Protect client information |
| Good Faith | Act honestly in all dealings |
Agent vs. Broker Duties
| Producer Type | Primary Duty To |
|---|---|
| Agent | Insurance company (but still must be fair to client) |
| Broker | Client/Insured |
Exam Tip: Brokers represent the client, while agents represent the insurer. However, both have ethical obligations to treat all parties fairly.
Disclosure Requirements
Indiana producers must disclose:
Compensation Disclosures
- Method of compensation (commission, fee, both)
- Material conflicts of interest
- Ownership interests in recommending insurers
- Referral arrangements
Product Disclosures
- All material terms and conditions
- Limitations and exclusions
- Premium and cost information
- Comparison with alternatives when replacing
Handling of Funds
Producers must handle premiums and client funds according to strict rules:
Premium Collection
| Requirement | Rule |
|---|---|
| Deposit | Promptly to insurer or trust account |
| Commingling | Cannot mix with personal funds |
| Trust Account | Required for holding premiums |
| Records | Must maintain detailed records |
Trust Account Requirements
- Separate from personal accounts
- Clearly designated as trust account
- Detailed records of all transactions
- Regular reconciliation
- Available for IDOI examination
Consequences of Mishandling
- License suspension or revocation
- Required restitution
- Civil liability
- Potential criminal charges
Record Keeping
Indiana requires producers to maintain records:
Required Records
| Record Type | Purpose |
|---|---|
| Applications | Document client information |
| Policy documents | Show coverage provided |
| Client correspondence | Document communications |
| Premium records | Track funds received |
| Replacement forms | Document replacement transactions |
Continuing Education
Indiana requires ethics training as part of CE:
- Ethics hours required every renewal period
- Must be Indiana-approved courses
- Covers regulatory updates
- Includes case studies and examples
Test Your Knowledge
Which type of Indiana insurance producer primarily represents the client rather than the insurer?
A
B
C
D
Test Your Knowledge
Can an Indiana insurance producer mix premium funds with personal funds?
A
B
C
D