What is a requirement for a life insurance producer when selling a policy without an illustration?

When selling a life insurance policy without providing an illustration, a vital requirement for a life insurance producer is to provide a statement confirming that no illustration was given. This statement serves several important purposes. First, it ensures transparency in the sales process by acknowledging to the consumer that they did not receive a detailed projection or visual representation of the policy's benefits, costs, and performance expectations. Illustrations are often crucial for helping clients understand the potential growth of their policy and the factors that can affect it. By documenting that no illustration was provided, the producer helps protect both the consumer and themselves by clearly indicating the limits of the information shared during the sales conversation. This requirement is designed to help prevent misunderstandings regarding the policy's workings and the expectations surrounding it.

Other options, while relevant in different contexts, do not fulfill the specific legal requirements in this scenario. For instance, verbally explaining policy terms provides information but does not satisfy the need for written confirmation regarding the absence of an illustration. Similarly, obtaining a witness signature or providing a second opinion document may not be necessary in this instance and are not mandated by regulation concerning the sale of life insurance without an illustration.