Arrange the following procedural steps in the correct chronological order for correcting an error on a paper insurance application prior to policy issuance.
- 1The producer discovers an incorrect answer or omission on a completed paper insurance application.
- 2The producer contacts the applicant to discuss the required correction.
- 3The incorrect answer is crossed out and the correct information is written on the application.
- 4The applicant initials next to the correction to legally authorize the change.
- 5The producer submits the properly amended and authorized application to the insurer's underwriting department.
Answer
The correct sequence is: discover the error, contact the applicant, correct the error, have the applicant initial the correction, and finally submit the application.
Any changes made to an insurance application after it has been completed must be acknowledged and authorized by the applicant. The proper procedure is to identify the error, inform the applicant, make the physical correction (without correction fluid), have the applicant initial the specific change, and then submit the finalized document.
Step-by-Step Solution
Key Concept
Application Correction Protocol