General Insurance
A New York producer collects an application and the first premium. What does the producer owe the applicant?
Answer and explanation
Answer: C. A producer owes the applicant care in transmitting the application accurately and in handling premium properly, holding those funds in a fiduciary capacity. Issue, final rating, and claim payment are the insurer's decisions and cannot be promised by the producer.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, responsibilities to the applicant and insured
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