Key Takeaways
- Rhode Island producers have fiduciary duties to act in the best interest of clients
- Producers must disclose compensation arrangements and conflicts of interest
- Premium funds must be handled according to strict requirements
- Producers must maintain accurate records for regulatory examination
- Continuing education includes ethics training requirements
Last updated: January 2026
Producer Conduct and Fiduciary Duties
Rhode Island insurance producers have legal and ethical obligations to their clients and the public.
Fiduciary Duties
A fiduciary is someone who acts in another's best interest. Insurance producers owe fiduciary duties to their clients:
Key Duties
| Duty | Description |
|---|---|
| Loyalty | Put client's interests first |
| Disclosure | Reveal all material information |
| Competence | Maintain professional knowledge |
| Confidentiality | Protect client information |
| Good Faith | Act honestly in all dealings |
Agent vs. Broker Duties
| Producer Type | Primary Duty To |
|---|---|
| Agent | Insurance company (but still must be fair to client) |
| Broker | Client/Insured |
Disclosure Requirements
Rhode Island producers must disclose:
Compensation Disclosures
- Method of compensation (commission, fee, both)
- Material conflicts of interest
- Ownership interests in recommending insurers
- Referral arrangements
Product Disclosures
- All material terms and conditions
- Limitations and exclusions
- Premium and cost information
- Comparison with alternatives when replacing
Handling of Funds
Producers must handle premiums and client funds according to strict rules:
Premium Collection
| Requirement | Rule |
|---|---|
| Deposit | Promptly to insurer or trust account |
| Commingling | Cannot mix with personal funds |
| Trust Account | Required for holding premiums |
| Records | Must maintain detailed records |
Consequences of Mishandling
- License suspension or revocation
- Required restitution
- Civil liability
- Potential criminal charges
Record Keeping
Rhode Island requires producers to maintain records:
Required Records
| Record Type | Retention Period |
|---|---|
| Applications | Per DBR requirements |
| Policy documents | Per DBR requirements |
| Client correspondence | Per DBR requirements |
| Premium records | Per DBR requirements |
| Replacement forms | Per DBR requirements |
Access to Records
- DBR Insurance Division can examine records
- Must provide records upon request
- Failure to maintain records is a violation
Continuing Education
Rhode Island requires ongoing education for producers:
CE Requirements
- Completion of required hours each renewal period
- Ethics training component required
- Must be completed before license renewal
- Courses must be approved by the state
Professional Standards
Beyond legal requirements, professional standards include:
- Treating all clients fairly and equally
- Maintaining professional competence
- Avoiding conflicts of interest
- Protecting client confidentiality
- Being honest in all communications
- Reporting illegal or unethical conduct
Test Your Knowledge
Which type of Rhode Island insurance producer primarily represents the client rather than the insurer?
A
B
C
D
Test Your Knowledge
What happens if a Rhode Island producer commingles client premium funds with personal funds?
A
B
C
D