Final answer:
In New Jersey, a producer must deliver a Buyer's Guide and a policy summary to the policy owner when selling an individual life insurance policy. This guide helps the buyer understand the policy and make an informed decision.
Step-by-step explanation:
When a producer sells an individual life insurance policy in New Jersey, they are required by law to deliver a Buyer's Guide along with the policy itself to the policy owner. This guide serves to educate and inform the policy owner about life insurance products and to assist them in making an informed decision about the purchase. The Buyer's Guide includes explanations of the terms and conditions of the policy, as well as a policy summary that provides an overview of the policy's costs and benefits.
A disclosure statement is also a critical document as it contains information about the insurance company and the policy's specific features. Moreover, while a receipt for the initial premium may be provided for the policy owner's records, and a policy summary includes a concise outline of the main points of the policy, it is the Buyer's Guide that is mandatory for delivery with the policy in New Jersey.