Life Insurance Basics
What is the producer's responsibility for the answers recorded on a life insurance application?
Answer and explanation
Answer: B. The producer records what the applicant says, fully and truthfully, and has the applicant review and sign it, since inaccuracies can support rescission within the contestable period. Verification is the underwriter's task, and supplying or omitting answers would be misconduct.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, application procedures
More life insurance basics questions
- Which three factors determine a life insurance premium?
- Which three factors determine the premium an insurer charges for a life policy?
- Who bears the investment risk in a variable life policy?
- Who owns, pays for, and benefits from key person life insurance?
- Whose interests may a producer weigh when making a recommendation under Regulation 187?
- Why can the human life value approach and the needs approach produce different amounts for the same client?
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