Which of the following practices is part of unethical conduct in the insurance industry?

Manipulating policy terms is a clear example of unethical conduct in the insurance industry. This practice involves altering or misrepresenting the terms of an insurance policy, which can deceive clients or lead to misunderstandings about the coverage provided. Such actions compromise the integrity of the insurance provider and undermine trust between agents and policyholders. Ethical conduct requires transparency, honesty, and adherence to the agreed-upon terms of insurance contracts, ensuring that clients fully understand their policies.

The other practices mentioned—providing truthful information, offering sound financial advice, and maintaining clear records—are all essential components of ethical conduct in the insurance industry. They promote transparency, help build trust with clients, and contribute to the overall professionalism expected of life agents. Adhering to ethical standards is crucial for maintaining a reputable and effective insurance practice.