Providing a disclosure document to clients is often perceived as a best practice you may decide to do. This is not the case! It is your regulatory responsibility to provide full written disclosure to every client or prospect prior to their signing of any application. Key areas of disclosure include:

• Licenses you hold and Insurers you are contracted to represent,
• The nature of your relationship with the Insurer or any other business you may be involved with,
• How (not how much) you are compensated and eligibility for additional compensation or volume incentives,
• Any actual or potential conflicts of interest with the client,
• The client right to request additional information.

The representations made in your disclosure to clients should be clear, honest and factual.

There are several sample disclosure documents available on HUBLINK, which you can utilize to create your own personalized disclosure document.

Regardless of the disclosures made to clients, Brokers should have sufficient documentation in their client files to provide evidence of, not only the disclosures made, but also documentation to support the recommendations made to clients.

Remember,
Good Business is Compliant and Compliance Matters!