Exam DISC-RM Practice Question 47
Study guide: Exam DISC-RM
A broker charges a client a fee to place its commercial property insurance. The insurer the broker chooses will also pay the broker a commission on the placement. The state has adopted the NAIC Producer Licensing Model Act's compensation disclosure section. What must the broker do before the client buys the policy?
- A) Nothing, because the commission is paid by the insurer rather than by the client
- B) Disclose only that it will receive compensation from the insurer in connection with the placement
- C) Obtain the client's documented acknowledgment of the commission and disclose its amount
- D) Decline the insurer's commission, because a producer paid by the customer may not be paid by an insurer
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