Upon selling a policy without an illustration, what must a producer ensure?

When a producer sells a life insurance policy without providing an illustration, it is crucial to obtain a signed statement from the client acknowledging that no illustration was provided. This requirement ensures transparency in the sales process and protects both the insurer and the client.

An illustration typically provides a detailed projection of how the policy is expected to perform over time, including factors like potential cash values and death benefits. When a producer opts not to provide this information, they must have the client formally acknowledge that they understand they did not receive such projections. This helps prevent misunderstandings regarding the policy’s benefits and performance, making it clear that the client was aware of the absence of this important information.

Ensuring that the client provides a signed statement serves as a safeguard for the producer against any future claims that the client was misled or did not fully understand the policy’s details, promoting ethical sales practices in the field of life insurance.