What can be a consequence of not adhering to the principles of insurance ethics?

Adhering to the principles of insurance ethics is fundamental for maintaining the integrity of the insurance profession. When an insurance producer fails to follow these ethical guidelines, serious consequences can arise. Legal penalties and the potential for losing their license represent one of the most significant repercussions. This occurs because many ethical standards are mandated by law and are designed to protect consumers and ensure fair practices in the industry. Violating these standards can lead to investigations, fines, or even the revocation of the producer's license to operate, which directly impacts their career and ability to work in the field.

The other options may highlight positive outcomes of ethical behavior but are not consequences of unethical practices. Increased client loyalty and enhanced reputation among peers are benefits associated with ethical conduct, while higher profitability can often be a result of building strong relationships through ethical practices, rather than a consequence of not adhering to them.