Life Insurance Basics
At delivery the applicant discloses a hospital admission that occurred after the application was signed. What follows?
Answer and explanation
Answer: B. A statement of good health cannot be signed where health has changed, so the new information goes back to the underwriter, who may amend, rate or decline the issue. Neither completing delivery nor unilaterally cancelling is the producer's decision.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, statement of good health
More life insurance basics questions
- What is the producer's core obligation in a sales presentation?
- What is the producer's responsibility for the answers recorded on a life insurance application?
- What is the standing of the agent's report accompanying a life insurance application?
- What key feature distinguishes a variable annuity from a fixed annuity?
- What licensing does the sale of a variable life insurance policy require?
- What makes a distinction between applicants unfair discrimination rather than lawful underwriting?
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