Final answer:
Donna fulfills her fiduciary duty by providing accurate information, ensuring timely premium payments, and disclosing all relevant information to clients. She would not fulfill this duty by recommending policies based on personal preferences.
Step-by-step explanation:
As an agent of XYZ Insurance, Donna has a fiduciary duty, which involves acting in the best interests of her clients. This includes providing accurate information about insurance policies, ensuring timely premium payments are made on behalf of clients, and disclosing all relevant information to clients, even if it may be unfavorable.The option that does NOT demonstrate how Donna fulfills her fiduciary duty is selectively recommending policies based on personal preferences. Such an action would not be impartial or in the best interest of her clients, and could lead to imperfect information as well as potentially increase the moral hazard. A fiduciary should avoid actions that prioritize personal gains over the clients' needs.
As an agent of XYZ Insurance, Donna fulfills her fiduciary duty by providing accurate information about insurance policies, ensuring timely premium payments are made on behalf of clients, and disclosing all relevant information to clients, even if it may be unfavorable. However, selectively recommending policies based on personal preferences is NOT a way in which Donna fulfills this duty. It is important for Donna to prioritize the best interest of the clients and provide unbiased advice.