Question 66

C is the statement that is not true about Disclosures.

The company must keep a copy of the Buyer's Guide and Policy Summary for at least 5 years is not accurate regarding the requirements for disclosures.

A) You must deliver a Buyer's Guide to your applicant/client.

This statement is true as delivering a Buyer's Guide is a standard requirement to ensure that applicants are informed about the details of their insurance options. It is a necessary part of the disclosure process.

B) You must deliver a Policy Summary at policy delivery.

This statement is also true since providing a Policy Summary at the time of policy delivery is a legal obligation that ensures the policyholder understands the terms and coverage of their insurance policy.

C) The company must keep a copy of the Buyer's Guide and Policy Summary for at least 5 years.

This statement is incorrect. Generally, companies are required to retain certain documents, but the specifics can vary by jurisdiction, and it is not universally mandated that these documents must be kept for five years. Therefore, this statement does not accurately reflect the disclosure requirements.

D) The policyholder has a right to request a Policy Summary at any time.

This statement is true as policyholders are entitled to request a Policy Summary whenever they need it to ensure they understand their coverage and rights under the policy.

Conclusion

The statement that the company must keep a copy of the Buyer's Guide and Policy Summary for at least 5 years is not universally true, making it the exception among the provided options. All other choices accurately reflect the legal requirements surrounding disclosures, highlighting the importance of transparency and informed decision-making in insurance practices.