T is an agent and when hired, is reminded that he has a responsibility to handle clients' funds in an honest and ethical manner. This responsibility is referred to as:

The responsibility to handle clients' funds in an honest and ethical manner is known as fiduciary responsibility. This term refers to the legal and ethical obligation that one party (the agent) has to act in the best interest of another party (the client). A fiduciary is expected to manage the client's assets and interests with the utmost care, loyalty, and transparency. This includes avoiding conflicts of interest and putting the client’s needs ahead of their own.

In the context of an insurance agent, fiduciary responsibility is critical as agents often manage clients' funds, including premiums and claims settlements. By recognizing this obligation, agents are held to a higher standard of conduct, ensuring that they act with integrity and in the best interest of their clients. This concept is foundational in building trust between agents and clients, which is essential for the successful practice of insurance.