The codes of conduct require life insurance agents to conduct business only in respect to products and services for which they have what?

• A. Competence
• B. Licensing
• C. Experience
• D. Training

Answer: (A)

The main idea being tested is that ethical conduct hinges on acting only within your actual capability to advise and service a product. The codes of conduct require you to handle business only for products and services you can truly understand and explain—that is, you must have competence. Licensing shows you’re authorized to sell, but it doesn’t guarantee you know every detail or can assess every client’s needs for every product. Training and experience contribute to competence, but the standard is the real ability to evaluate features, benefits, risks, and suitability for a given client. If you’re not competent in a product, you should seek the necessary training or refer the client to someone who is, ensuring recommendations are appropriate and not misleading.