What must be documented by the client when no illustration is provided during a life insurance sale?

In a life insurance sale, if no illustration is provided, it is essential for the client to sign a statement indicating that no illustration was received. This documentation serves as a formal acknowledgment by the client, which is important for regulatory compliance and ensures that both parties are clear on the terms of the sale. The requirement reflects the importance of transparency in the sales process, allowing for accountability regarding the information given to the client.

By having the client sign this statement, it helps to protect the insurer from future claims that may arise concerning the lack of information disclosed during the sale. This practice is critical in maintaining trust and integrity within the insurance industry, as it ensures that clients are aware they did not receive an illustrative example that could better explain policy terms, benefits, and costs. Hence, this documentation promotes informed decision-making for the client in their insurance choices.