---
name: insurance-suitability-principal-agent
description: "Activate when: an insurance agent's compensation conflicts with the client's best coverage; 'which product do I recommend', commission-driven product choice, captive vs independent conflicts, best-interest duty. Do NOT activate when: no recommendation is being made (pure servicing) or no conflict exists."
---

# Insurance Agent — Suitability & Principal-Agent Conflict

> **Industry front door for [principal-agent](../principal-agent/SKILL.md).** Adds domain triggers, example, packs. Parent Process unchanged.
> **Not legal advice.**

**Activate when:** recommending among products with different commissions; captive-carrier pressure vs client fit; annuity/life with best-interest duties; disclosing agent capacity.
**Do NOT activate when:** servicing only / no recommendation.

## Why this variant
The parent [principal-agent](../principal-agent/SKILL.md) analyzes misaligned incentives between an agent and the principal they serve. An insurance producer is paid by carriers but advises clients — a structural conflict. Suitability/best-interest rules exist to resolve it: recommend on client fit, disclose the conflict, don't let commission drive the product.

## Domain inputs → the analysis
- Name the conflict: higher-commission product vs best-fit coverage; captive limits vs client need; churning incentive on replacements.
- Duty: document the recommendation rests on the client's needs/finances (suitability/best-interest), not your payout.
- Disclose capacity (agent of the carrier vs broker) and material conflicts; where the best fit isn't in your appointments, say so.

## Worked example
Two annuities fit; one pays you 2× commission.
→ Principal-agent view: recommending the higher-commission one without a client-benefit basis is a suitability + best-interest breach. Document why the chosen product is best for the client, or recommend the better-fit lower-commission one.

## Packs
- **Solo agent**: conflict-disclosure + suitability-basis template.
- **Agency**: best-interest review on annuity/life sales; replacement scrutiny.

## Red flags
- Product chosen for commission, rationalized after.
- Capacity (agent vs broker) undisclosed.
- Replacement/churning for a new commission.

## Verification
- [ ] Conflicts named (commission/captive/replacement)
- [ ] Recommendation documented on client-fit basis
- [ ] Capacity + material conflicts disclosed
- [ ] Better-fit option outside appointments acknowledged where relevant

---
*Part of **deciqAI Knowledge Skills** — 225 open-source thinking skills that make rigor executable for AI agents. The same skills power every deciqAI agent, which runs them autonomously to operate your company. **See it run → https://www.deciqai.com/s/insurance-suitability-principal-agent** · Built by deciqAI · github.com/deciqAI · Contributions welcome.*