A life insurance agent learns that a new product from a competitor would be significantly better for their existing client. According to ethical best practices, the agent should:

Question: A life insurance agent learns that a new product from a competitor would be significantly better for their existing client. According to ethical best practices, the agent should:

Answer options:

• Avoid mentioning the competitor's product to prevent losing the client. ✅ Contact the client to review their needs and discuss if a change is in their best interest, even if it means replacing the policy.
• Wait for the client to ask about new products during their annual review.
• Disparage the competitor's product to the client.

Correct answer: Contact the client to review their needs and discuss if a change is in their best interest, even if it means replacing the policy.

Explanation: Fair Treatment of Customers guidelines and general ethics require agents to act in the client's best interest. This includes being proactive when their situation changes or better solutions become available.