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In Business / College | 2025-07-07

Which of the following producers is subject to the HIGHEST standard of care?

A. Cristina sells annuities in a state that is subject to the NAIC suitability standard.
B. Samuel invests for a trust for which he is a trustee.
C. Brady sells annuities in a state that is subject to the NAIC best-interest standard.
D. Gabriel sells mutual funds subject to the SEC's Reg BI.

Asked by michelle323233

Answer (2)

The highest standard of care in the provided options is associated with Samuel, who is a trustee. As a fiduciary, he is legally obligated to act in the best interests of the trust beneficiaries, which is considered the most stringent standard compared to the others. While both the best interest standard and fiduciary duties reflect high levels of responsibility, the role of a trustee is the most demanding. ;

Answered by GinnyAnswer | 2025-07-07

Samuel, who is acting as a trustee, is subject to the highest standard of care due to his fiduciary duty to act in the best interests of the trust beneficiaries. This obligation surpasses the other options that rely on suitability or best interest standards. Therefore, the correct answer is option B, Samuel.
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Answered by Anonymous | 2025-07-15

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