Which of the following is an example of ethical practices in insurance?

Maintaining the confidentiality of all policyholders' information is a fundamental ethical practice in the insurance industry. This principle is critical because it builds trust between policyholders and insurance providers. Clients share sensitive personal and financial information with insurers, expecting that their privacy will be protected. By ensuring that this information remains confidential, insurers demonstrate respect for their clients and comply with legal and regulatory requirements regarding privacy.

The other options do not directly align with core ethical practices in the same way. Recommending a will, while beneficial, is not universally applicable to all clients and may not be part of an insurance professional’s role. The action of never drinking in front of clients speaks more to professionalism than ethics, and while it reflects good judgment, it is not an ethical mandate. Lastly, the practice of collecting the first premium along with the application may be a business practice but does not inherently pertain to ethics in the same manner as maintaining confidentiality.