If a salesperson offers two products to a customer but one product provides a larger commission, the salesperson may be presented with which issue?

• A. An Opportunity for Increased Income.
• B. A Conflict of Interest.
• C. A Case of Moral Turpitude.
• D. An Errors and Omissions Claim.

Answer: (B)

When a salesperson’s compensation depends on which product they sell, a conflict of interest can arise. The salesperson faces competing duties: to act in the customer’s best interest and to maximize their own financial gain. That incentive can bias recommendations, making it more likely they steer the client toward the higher-commission product even if it isn’t the best fit. This ethical and regulatory concern—keeping advice aligned with the client’s needs—is what a conflict of interest describes in life insurance practice.

The other options don’t fit as the core issue here: an opportunity for increased income is simply a potential outcome, not a problem in itself; moral turpitude refers to grossly immoral acts, which is not invoked just by having a higher commission; an Errors and Omissions claim concerns mistakes or negligence in advice or service, not the presence of a conflict of interest by itself.