Which situation would require an agent to disclose their commission structure?

In the context of selling a life insurance policy, disclosing the commission structure to the client is critical for transparency and ethical practices. The agent's commission can influence the advice they provide, potentially impacting the client's decision-making. Full disclosure ensures that clients have a clear understanding of how their agent is compensated, allowing them to make more informed decisions regarding their insurance needs.

When an agent is in the process of selling a life insurance policy, it becomes essential to clarify potential conflicts of interest that may arise from the commission structure. This practice not only fosters trust between the agent and the client but also aligns with regulatory requirements, which often mandate such disclosures to protect consumers.

In contrast, the other situations described, such as soliciting general information, changing a policy's terms, or renewing an existing policy, do not typically require the same level of disclosure regarding commission. These scenarios focus more on the information being exchanged or the terms of an existing agreement, rather than on the potential influence of compensation on the agent's recommendations or actions. Thus, the need for transparency about commission structures is most pertinent during the initial sale of a life insurance policy.