Life · Chapter 7 · Agent Duties & Disclosures
Fiduciary Capacity / Responsibility
Definition
The producer's legal obligation to act in the client's best interest — care, loyalty, and good faith — especially when collecting premiums (money held in trust, never commingled). An unintentional error or honest mistake by a producer is a tort called an error and omission.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms