This is why I hate insurance companies/agents.
It's definitely what gives them/us a bad name. In my opinion, it's taking advantage of people that don't know better, but trust you to do the right thing for them.
That isn't to say that the people doing it are bad...they're just misinformed as well (like the original poster). One more reason people in this industry should be required to pass a REAL test and have some education about the industry.