Completing the Application, Underwriting, and Delivering the Policy
What does the application say about the role its answers play in the contract?
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, and that no information will be considered to have been given to the company unless it is stated in the application. This is why an oral disclosure to an agent that never reaches the form carries no weight.Source: Interstate Insurance Product Regulation Commission — Individual Life Insurance Application Standards — § 2(K), Basis of the policy
More completing the application, underwriting, and delivering the policy questions
- A policy term remains genuinely ambiguous after ordinary interpretation. What consequence follows from the contract being one of adhesion?
- A producer notices that the applicant marked yes to a medication question but left the requested details blank. What is the best next step?
- A producer submits a life insurance application for a client. Before requesting a credit and background consumer report from a reporting agency, which permissible purpose under FCRA allows the insurer to proceed?
- A producer tells an applicant, 'I can change the receipt so coverage starts today even though its stated conditions are unmet.' Which response is accurate?
- A proposed insured is below the age of majority. How is the competent parties element ordinarily satisfied?
- A statement in a life insurance application is treated as a representation rather than a warranty. What must an insurer show to contest the policy on that basis?
592 Georgia questions like this one.
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