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H has told his client that in order to procure an annuity, he must see the client's financial statements but his client refuses. Which of the following, under Life Solicitation Rule, must H comply with?

A: H has no obligation since the client did not cooperate
B: H must report them to the Director
C: H must figure out a different policy
D: H must offer to pay for some of the annuity

1 Answer

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Final answer:

If a client refuses to provide financial statements for the procurement of an annuity, the advisor must still comply with ethical and regulatory standards but may not have further obligations if the importance of the documents is clearly communicated and the client still does not cooperate.

Step-by-step explanation:

Under the Life Solicitation Rule, it is important for an insurance advisor or agent, referred to here as 'H', to have a clear understanding of the client's financial situation to ensure that they are recommending a suitable product, like an annuity. While H should make an attempt to obtain the financial statements from the client, if the client refuses to provide this information, H must still comply with ethical and regulatory requirements. Option A could be correct in that H has no further obligation if the client does not cooperate, assuming that H has clearly communicated the importance and necessity of these documents for making a proper recommendation. Option B, C, and D are not typically required or recommended responses under these circumstances. It is critical that H respects the client's wishes while still adhering to the industry's professional and ethical standards.

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