Which statement is true regarding confidentiality in life insurance?

The statement that all information about a client must be treated as confidential is a fundamental principle in the life insurance industry. This concept of confidentiality is critical because life insurance agents and companies handle sensitive personal and financial information from their clients. Maintaining this confidentiality builds trust between the client and the agent, ensuring that clients feel secure in sharing their private information.

Confidentiality is protected by various regulations and ethical standards that govern the behavior of insurance professionals. Agents are obligated to safeguard their clients' information, using it only for purposes that are necessary in the course of the business relationship, such as obtaining quotes and processing claims. This duty helps assure clients that their personal data will not be disclosed without their consent.

In contrast, other options do not accurately reflect the norms and regulations surrounding confidentiality in life insurance. Advertising by agents may be regulated, but it is not outright prohibited; certain guidelines must be followed. While agents might consider profitability, recommending policies must be based on the best interests of the client, rather than solely on the company's profitability. Finally, agents may indeed state their company's name in advertisements, provided they comply with applicable advertising regulations. Thus, the assertion that all client information must remain confidential is the most accurate and represents a core obligation in the life insurance profession.