Which of the following is a requirement when explaining the Suitability Notice to potential policyholders?

When explaining the Suitability Notice to potential policyholders, it is essential that it be verbally explained and discussed. This requirement ensures that policyholders not only receive the information but also understand its implications and relevance to their individual circumstances. Engaging in a discussion allows the representative to clarify any questions the potential policyholder may have, ensuring they are fully informed before making a decision. This approach promotes transparency and enhances the potential policyholder's comprehension of how the products might suit their needs.

A more mechanical approach, such as reading the notice verbatim or simply obtaining a signature, does not foster a complete understanding and could lead to misunderstandings about the policyholder’s needs and the products being offered. Engaging in conversation not only enhances trust but also aligns with ethical standards that prioritize informed consent and customer education in the insurance industry.