Final answer:
If a client refuses to provide complete or accurate information during an annuity sale and purchases an annuity that the agent does not recommend, this could lead to unsuitable recommendations and potential financial harm. It's the agent's duty to inform the client of the risks, document the decision, and maintain professional integrity.
Step-by-step explanation:
When Garth, a client, refuses to provide complete or accurate information to Katie, his agent, during an annuity sale, and also decides to purchase an annuity that Katie does not recommend, several issues arise. Firstly, incomplete or inaccurate information can lead to unsuitable recommendations for the client, potentially resulting in financial harm to Garth. Moreover, agents like Katie have a fiduciary duty to act in their client's best interest, but this becomes exceedingly difficult when accurate client information is not provided. Even if Garth decides to go against Katie's advice, she still must ensure that he is fully informed about the risks and consequences of such a decision. If Garth insists on purchasing the non-recommended annuity, Katie should document his decision and her recommendations thoroughly to protect both her professional integrity and to comply with regulatory requirements.