What must insurance brokers disclose to their clients concerning commissions?

Insurance brokers are required to disclose the amount of commissions they earn for placing their business. This requirement is in place to ensure transparency and to help clients understand the financial relationship between brokers and insurance companies. By revealing the specific commission amounts, clients are better equipped to make informed decisions regarding their insurance options and understand any potential conflicts of interest that may arise from the broker's financial incentives. This level of transparency is crucial for fostering trust and ensuring that clients are aware of how brokers are compensated for their services.

The other options do not align with the specific disclosure requirements set by regulations governing insurance brokers. For instance, disclosing the estimated total earnings for the year or the commissions of competing brokers does not directly address the client's relationship with their particular broker. Similarly, sharing only the percentage of commissions without specifying the actual amounts may not provide clients with a clear understanding of how much a broker stands to earn from a particular policy, ultimately failing to meet the intent of the disclosure requirements.