What must brokers disclose to their clients under the RIBO Act?

Under the RIBO Act, brokers are required to disclose potential conflicts of interest to their clients. This is critical because it helps ensure transparency in the broker-client relationship. When a broker has a potential conflict of interest, it could affect their professional judgment and the recommendations they make. By disclosing these conflicts, the broker enables the client to make informed decisions regarding their own insurance needs. This practice is rooted in the principles of honesty and integrity, essential components of a trustworthy advisory role.

While disclosing all commissions received is important for transparency regarding how brokers may be compensated, it is not explicitly mandated by the RIBO Act as a primary disclosure item. Similarly, sharing personal information of clients is primarily governed by privacy laws rather than the RIBO Act, which focuses more on conflicts of interest and how these can impact the advice given to clients. Thus, the emphasis on disclosing potential conflicts of interest aligns directly with the objectives of the RIBO Act to protect clients and promote ethical behavior in the insurance industry.