Final answer:
A Suitability Notice is a required document that insurance companies must provide to potential policyholders in the U.S., ensuring they have the necessary information to make an informed decision about the insurance policy that fits their needs.
Step-by-step explanation:
You are required to issue a Suitability Notice to potential policyholders in all U.S. states and territories. A Suitability Notice is a document that informs the potential policyholder about how a particular insurance policy may suit their needs and financial objectives. It's essential for insurers to provide this notice as part of the pre-sale process to ensure consumers are making informed decisions based on accurate information that relates to their specific circumstances.
In the insurance industry, compliance with regulations is critical, and the Suitability Notice is one of the requirements insurers must fulfill. This is especially important in the life insurance and annuities sectors, where a mismatch between the product and the policyholder's needs can have significant long-term consequences.