Which restriction applies to brokers when marketing insurance products?

Brokers are required to uphold ethical standards in their practice, which includes not misrepresenting insurance products to clients. This responsibility ensures that clients receive accurate and honest information about the products being marketed, allowing them to make informed decisions. Misrepresentation can lead to confusion, distrust, and potentially harmful financial decisions for clients. The prohibition against misrepresentation is fundamental to maintaining integrity within the insurance industry and protecting consumer rights.

While the other options may contain some elements of truth regarding industry practices, they do not apply universally or are not as foundational as the necessity to avoid misrepresentation. For example, brokers may have flexibility regarding commission disclosures depending on regulatory frameworks and client agreements; they often can work with multiple insurance providers rather than being limited to just one, and they are allowed to participate in advertisements as long as they adhere to relevant regulations regarding truthfulness and compliance.