An agent is acting ethically in all of the following situations EXCEPT...

An agent acting ethically must always represent the interests of their clients, but this representation should not exclude the agent's responsibilities toward the insurance company they represent. In this context, always representing the insured could imply that the agent prioritizes the client's interests over ethical adherence to regulations and obligations to the insurer. Ethical practice in insurance requires a balance, where the agent should advocate for the insured while also adhering to the terms of the policies and regulations set by the insurer.

In contrast, disclosing all relevant information to clients promotes transparency and enables them to make informed decisions. Advising clients to read their policies carefully ensures they understand their coverage and limitations, which is a key responsibility of an agent. Following the insurer's guidelines is also part of ethical conduct, as it maintains compliance with legal and operational standards in the insurance domain.