The recommended product or service must be appropriate for the needs of the consumer as determined by a needs-based assessment done by the advisor and/or as identified by the client.
The advisor and the client should have a common understanding about the services that the client expects the advisor will provide in the immediate transaction and ongoing relationship. The advisor should inform the client about any changes that may affect this relationship.
You must conduct a comprehensive needs analysis process before you can make a product recommendation. You must "Know Your Client". Based on the facts and information obtained from the client, advisors should identify the client's need. The extent of the assessment will vary according to product and circumstance. As an advisor of insurance products, it is your responsibility to identify all the issues and make appropriate recommendations to address them.
The product recommendation and professional advice should address the client's need given the circumstances at the time of the sale.
