Which statement about disclosures is incorrect?

The statement that suggests the company must keep a copy of the Buyer's Guide and Policy Summary for at least 5 years is incorrect. In reality, regulations typically require insurers to retain such documents for a specific period, but this often is not as long as five years. The accurate retention period can vary based on state laws and company policies, and insurers must adhere to the specific requirements set forth by the Alabama Department of Insurance as well as any applicable federal regulations.

In contrast, the need for providing a Buyer's Guide for every policy reflects regulatory requirements designed to ensure transparency and protect consumers by offering essential information before purchasing a policy. The entitlement of the policyholder to receive a summary and disclosures before and after making a purchase is intended to empower them with knowledge about their coverage. Lastly, the obligation to disclose all coverage limits and exclusions is a crucial part of providing clear and comprehensive information to consumers, allowing them to be fully aware of their policy’s limitations.