Which of the following statements about insurance agents and commissions is correct?

The statement that agents must disclose all earned commissions is correct because insurance agents have a fiduciary duty to their clients and are expected to maintain transparency regarding their compensation. This requirement ensures that clients are fully informed about any potential conflicts of interest that may arise from the agent's earnings on policies sold. By disclosing all earned commissions, agents can foster trust and uphold ethical standards within the insurance industry, which is essential for maintaining a professional reputation and ensuring compliance with regulatory guidelines.

In contrast, agents may receive commissions on policy renewals depending on the structure of their agreements with insurers, which means the second statement is misleading. The appointment of an agent is also crucial to commission payment, as agents typically need to be appointed or authorized by an insurer to sell their policies and receive commissions. Therefore, the third statement does not hold true in practice. Lastly, agents typically face restrictions on representing nonadmitted insurers without specific licensing or regulatory compliance, making the fourth statement inaccurate.