Completing the Application, Underwriting, and Delivering the Policy
Why does a change to an answer on a life application normally need the applicant's attention rather than the agent's alone?
Answer and explanation
Answer: C. Section 2(K) makes the signed statements the basis for any policy issued, and section 2(N) records the applicant's signature and its date and place, so an answer changed without the applicant does not carry that support. The agent may submit the form, no advance approval of each alteration is required, and the contestable period runs from issue.Source: Interstate Insurance Product Regulation Commission — Individual Life Insurance Application Standards — § 2(K) read with § 2(N)
More completing the application, underwriting, and delivering the policy questions
- 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?
- An applicant attempts to purchase a single-premium $500,000 life policy using multiple cashier's checks under $10,000 from different banks. What action is the insurer required to take under AML rules?
- An applicant completes an application and pays the initial premium with it. In contract terms, what has the applicant done?
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