Which of the following is a key element that should be included in a Terms of Business Agreement (TOBA)?

A Terms of Business Agreement (TOBA) is a critical document that outlines the relationship and expectations between an insurance broker and their clients. Including regulatory information in a TOBA is important because it ensures that both parties understand and comply with the legal and regulatory framework governing insurance practices. This information helps to establish transparency and trust, as it informs the client about the broker's obligations under relevant laws, including conduct standards, licensing requirements, and consumer protection measures.

In contrast, while details about competitor firms, a list of previous clients, and insurance claims history may be relevant in different contexts, they do not serve as essential components of a TOBA. Competitor information can lead to confidentiality and ethical concerns, while a history of previous clients and claims may provide insight but are not necessary for establishing the terms of business between the broker and client. Regulatory information is foundational for ensuring that the business relationship adheres to the highest standards of practice and compliance.