What does the law of agency require brokers to do in terms of their principal's instructions?

The law of agency establishes a fiduciary relationship where brokers act on behalf of their principals (clients), meaning they are required to follow the instructions given to them by their principals as long as those instructions are lawful. This duty includes the expectation of performing these instructions in a timely manner, ensuring that the client’s needs and interests are prioritized. By adhering to the principal's lawful instructions, brokers build trust and maintain a professional standard expected in the insurance industry.

The other choices do not align with the fundamental principles of agency law. Performing duties beyond a principal’s instructions could lead to potential conflicts of interest or decisions that may not align with the principal’s wishes. Acting in personal interest is contrary to the obligation of loyalty that brokers owe to their principals; the focus should always be on serving the principal's best interests. While maintaining confidentiality is a crucial aspect of the broker-principal relationship, it is secondary to the primary obligation of following the principal’s lawful instructions. Therefore, the requirement to perform all lawful instructions in a timely manner accurately captures the essence of the broker's responsibilities under the law of agency.