What information must life insurance agents disclose about commissions?

Life insurance agents are required to disclose the total amount of compensation they will receive from the sale of a policy. This level of transparency is aimed at ensuring that consumers are fully informed about the financial incentives involved in the purchasing process. Providing the total compensation includes not only the percentage of the commission but also any additional bonuses or incentives that may be part of the compensation package.

This requirement is in place to help clients understand the potential conflict of interest that could arise when an agent's compensation is contingent on the sale of certain policies. By knowing the total compensation, clients can better evaluate the recommendation they're receiving and feel more empowered in their decision-making process.

The other options, while they touch on aspects of the commission structure, do not provide the complete scope of information that agents are mandated to disclose. For instance, simply providing the percentage or commission structures for different policies might not give clients a clear view of the agent's financial motivation behind a specific recommendation. Additionally, details about competitor commissions are irrelevant to the client’s transaction and are not required for disclosure.