Completing the Application, Underwriting, and Delivering the Policy
An applicant leaves several required questions blank and signs the application anyway. What is the difficulty?
Answer and explanation
Answer: D. Section 2(K) requires the application to state that the statements and answers are true and complete to the best of the person's knowledge and belief, so leaving required items blank leaves the representation unsupported and the underwriting incomplete. The insurer is not obliged to issue, the agent does not assume the applicant's obligation, and no conversion occurs.Source: Interstate Insurance Product Regulation Commission — Individual Life Insurance Application Standards — § 2(K), True and complete
More completing the application, underwriting, and delivering the policy questions
- A client reads a delivered policy and cannot tell which values are guaranteed. What does consumer guidance say should happen?
- A consumer report plays a small part in an insurer's decision to charge a higher life premium. What does the FCRA require?
- A corporation is applying to own a life insurance policy. Which signature best evidences a competent party acting on behalf of the corporation?
- A health provider receives a valid HIPAA authorization directing disclosure of specified records to a life insurer for underwriting. How does HIPAA's minimum-necessary standard apply to that authorized disclosure?
- A life application authorizes the insurer to obtain information from a third-party provider but does not describe the information or provider type. What is missing?
- A life insurance policyowner may stop paying premiums at any time without legal penalty, but the insurer is legally bound to pay the death benefit if the insured dies while the policy is in force. This situation best illustrates which legal characteristic of an insurance contract?
592 Georgia questions like this one.
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