What must a client do if a life insurance contract is sold without an illustration?

When a life insurance contract is sold without an illustration, the client must sign a statement affirming that no illustration was provided. This requirement exists to ensure transparency and accountability in the selling process. An illustration serves as a detailed representation of the policy’s benefits, costs, and investment performance projections, which can significantly influence a client’s decision. By signing a statement that no illustration was provided, the client acknowledges that they understand the implications of not having this important information, which helps protect the insurer against potential claims of misrepresentation or lack of disclosure.

This practice reinforces the principle that clients should be fully informed about the products they are purchasing, promoting ethical conduct and consumer protection in the insurance industry. Recognizing this process also emphasizes the importance of documentation in financial transactions, ensuring clarity in communication between the client and the insurer.