Completing the Application, Underwriting, and Delivering the Policy
Why do applications ask both about other coverage in force and about replacement intent?
Answer and explanation
Answer: B. Section 3(H) captures what other life and annuity contracts are in force or pending, while section 3(I) captures whether the new coverage is intended to replace or change any of it. Holding coverage and intending to replace it are different facts, and replacement is regulated rather than forbidden.Source: Interstate Insurance Product Regulation Commission — Individual Life Insurance Application Standards — § 3(H) and § 3(I) compared
More completing the application, underwriting, and delivering the policy questions
- After signing an application but before policy delivery, the proposed insured begins taking a newly prescribed heart medication. What should the proposed insured do?
- An adult applies for a policy on his own life and names his sister as beneficiary. Whose signatures does the application ordinarily require?
- An agent observes unusual funding behavior while selling a covered life product. What is the agent's proper AML role?
- An applicant applies for preferred rates and the insurer issues a standard-rated policy instead. In contract terms, what has the insurer done?
- An applicant applies without paying any premium. The insurer issues the policy exactly as requested. When is the contract formed?
- An applicant asks whether every answer on a life application is an absolute guarantee of literal accuracy. Which response is correct?
592 Georgia questions like this one.
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