What document must an insurance agent typically provide to clients before selling a policy?

An insurance disclosure statement is a crucial document that an insurance agent must provide to clients before selling a policy. This statement is designed to ensure transparency by detailing important information about the insurance product, including the terms and conditions of the policy, potential risks, and the responsibilities of both the insurer and the insured. It helps clients understand what they are purchasing and facilitates informed decision-making.

By providing the disclosure statement, the agent fulfills regulatory requirements and promotes ethical practices in the insurance industry. This is especially significant since insurance policies can be complex, and clients must be aware of their rights and obligations before entering into a contract.

While product brochures, policy summaries, and application forms provide helpful information and aid in the purchasing process, they do not carry the same legally protective function that the disclosure statement does. Thus, the disclosure statement plays an instrumental role in consumer protection within the insurance market.