Suitability in the Sale of Insurance and Related Financial Products

Summary

This practice note will address suitability in the sale and marketing of insurance and related financial products. Suitability is a construct that permeates the ethical sale of all products, including products with insurance-like characteristics and other financial products. Most consumers will rely upon a financial professional's recommendations, and suitability only becomes an issue if the consumer acts upon the advice to their detriment. In the interest of consumer protection, virtually all jurisdictions require initial and continuing education training for producers and regular monitoring by insurers of sales practices concerning suitability.