When a plan sponsor is considering the purchase of a group life and health insurance or group retirement plan, it is important that they have good information about the product, how it meets their needs, the company offering the product, and the advisor and the advisor's business relationships.
Regulators' principles clearly oblige advisors to make appropriate disclosure at point-of-sale. Consumers must be made aware of your business relationships and any conflicts of interests. At the same time, customers should be made aware if you may be eligible for non-monetary benefits, such as travel incentives, conference qualification, etc., if such benefits are based on volume of business that you place with a company during a given time period. Disclosure to the client is a condition of your eligibility for such non-monetary benefits.
To assist you in meeting the various regulatory requirements and best business practices, The Canadian Life and Health Insurance Association (CLHIA) has developed a Reference Document. The Reference Document provides suggested wording to help you develop a disclosure letter, to suit your own situation.
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