Completing the Application, Underwriting, and Delivering the Policy
How do the application's agreement provisions relate to the contract eventually issued?
Answer and explanation
Answer: B. Section 2(K) requires acknowledgement that the statements and answers in the application are the basis for any policy issued by the company. That link survives delivery, runs to the contract both parties rely on, and is not conditioned on the policy being issued exactly as applied for.Source: Interstate Insurance Product Regulation Commission — Individual Life Insurance Application Standards — § 2(K), Basis of any policy issued
More completing the application, underwriting, and delivering the policy questions
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- An applicant is offered free coverage and a cash payment by investors who will own the policy after two years. What should the producer conclude?
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- An applicant mentions a health condition to the agent, but it never appears on the application. What follows from the standard agreement language?
- An applicant plans to surrender an existing whole life policy after the new policy is issued. How should the replacement question be answered?
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