What is a key requirement for an insurance broker in placing insurance according to the standards set?

The key requirement for an insurance broker in placing insurance is that due care must be exercised in placement. This means that brokers have a professional duty to act in the best interests of their clients by thoroughly assessing their needs and ensuring that the insurance products they recommend are appropriate for those needs. This diligence includes researching available options, understanding various policy terms, and ensuring that the coverage is suitable for the risk being insured.

This principle of exercising due care helps establish trust between the broker and the client, ensuring that clients receive not just the lowest price, but also the best value and suitability for their specific circumstances. Proper documentation and informed decision-making are fundamental to maintaining this duty of care, thus enabling brokers to fulfill their responsibilities effectively.