What fiduciary responsibility does an insurance broker have according to the Insurance Act?

Fiduciary responsibility refers to the obligation to act in the best interest of another party. In the context of an insurance broker according to the Insurance Act, holding unearned commissions in a trust reflects a key aspect of fiduciary responsibility. This means that when brokers receive commissions on policies, they must safeguard the amounts that have not yet been earned, acting with loyalty and integrity towards their clients. This duty helps to ensure that the broker is not improperly using client funds for personal gain and maintains trust in the relationship between the broker and the client.

While accuracy in advertising policies, providing marketing support, and setting insurance premiums are related to the insurance industry, they do not encapsulate the fiduciary duty of a broker. Maintaining client trust by handling financial aspects properly is fundamental to the broker's role and is explicitly addressed in the fiduciary responsibility defined in insurance regulation.