Final answer:
An agent's obligation to work in the best interest of an insurance applicant or insured is known as fiduciary duty, which is a key component of the ethical relationship between an agent and the client, echoing the duty of fidelity as described by philosopher W.D. Ross.
Step-by-step explanation:
The agent's obligation to act in the best interest of an insurance applicant or insured is known as fiduciary duty. This duty is a legal or ethical relationship of trust between two or more parties, typically a trustee and a beneficiary. In the context of insurance, the agent (as the trustee) is expected to act with utmost good faith, putting the interests of the insurance-buying public (as the beneficiary) above their own, making recommendations that best fit the client's needs and financial situation.
Fiduciary duty aligns well with the ethical principles advanced by philosopher W.D. Ross, particularly the duty of fidelity, which calls for honesty and truthfulness in all dealings. Insurance agents are therefore expected to uphold this duty as well as other professional standards to maintain the trust and confidence of their clients.