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Question

Difficulty: EasySignatures and Application Changes

Producer J is completing a paper life insurance application with a client. J accidentally writes down the wrong mailing address for the client. What is the legally acceptable procedure for correcting this mistake on the application?

  1. Draw a line through the error, write the correct address, and have the applicant initial the change.Answer
  2. B
    Cross out the error, write the correct address, and have the producer initial the change on behalf of the applicant.
  3. C
    Use correction fluid to cover the incorrect address and write the correct one without requiring any initials.
  4. D
    Call the underwriter to provide verbal-only assent for the change based on the producer's implied authority.

Answer

The producer must cross out the error, write the correct information, and have the applicant initial the change.
Any changes made to an insurance application must be initialed by the applicant. This ensures the applicant is fully aware of the information being submitted to the insurer, as the application forms the basis of the legal contract. Drawing a single line through the mistake allows the original text to remain readable, maintaining a clear paper trail.

Step-by-Step Solution

1
Identify the legal requirements for altering a signed or soon-to-be-signed insurance contract application.
Any changes must be explicitly agreed to by the contracting party (the applicant).
The application contains the representations that form the basis of the legal contract.
2
Evaluate the acceptable methods for documenting this agreement.
The applicant must initial any corrections directly on the document.
Initials provide documented proof that the applicant personally saw and approved the specific change.

Key Concept

Signatures and Application Changes
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Topics

Signatures and Application Changes

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