Which group is prohibited from acting as an insurance broker under the RIBO Act?

The prohibition on individuals acting solely for self-interest under the RIBO Act is crucial for maintaining the integrity of the insurance brokerage profession. This provision ensures that those who engage in insurance brokerage activities do so with a duty to the client and are acting in the client's best interests rather than pursuing their own financial gain. This is fundamental to establishing trust between clients and brokers, as insurance decisions significantly impact consumers' financial security.

In contrast, licensed insurance adjusters, trustees appointed under the act, and salaried employees seeking insurance for their employer operate within specific roles that may allow them to participate in certain insurance activities without the same conflict of interest that arises when individuals act solely for personal benefit. For instance, licensed insurance adjusters are professional representatives authorized to handle claims and may work under specific regulations that govern their roles. Similarly, trustees and salaried employees have defined responsibilities that do not inherently conflict with the duties of an insurance broker. Hence, the focus on self-interest as a prohibitive factor underscores the ethical standards expected in the brokerage profession.