Agent disclosure refers to the information producers are required or encouraged to provide to clients about their role, compensation, affiliations, and potential conflicts of interest when recommending insurance or annuity products. Depending on jurisdiction and product type, disclosures may include whether the producer represents one or multiple carriers, how they are compensated (commissions, fees, bonuses), and any incentives that could affect recommendations. Under best-interest and fiduciary-style regulations, including Reg BI and annuity best-interest rules, clear agent disclosure supports informed client decisions and helps regulators assess whether producers are acting in the customerTMs best interest. Transparent disclosure builds trust and reduces the risk of disputes over misaligned expectations or hidden compensation.

Advisors interact with agent disclosure requirements through standardized forms, cover pages, and scripts provided by carriers, broker-dealers, or compliance departments. Before making recommendations, they may present a written disclosure outlining their capacity (agent versus adviser), product limitations, and types of compensation they may receive. In practice, many producers integrate agent disclosure into their discovery and proposal meetings so clients understand the relationship upfront. Regulators and plaintiffsTM attorneys increasingly scrutinize whether disclosures were clear, timely, and consistent with actual behavior. Advisors who embrace robust agent disclosure use it to differentiate professional advice from transactional sales and to support a consultative, long-term relationship with clients.