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Difficulty: EasyCompleting the Application

While completing a paper application for a disability income policy, an applicant mistakenly writes their birth year as 1985 instead of 1995. The insurance producer notices this error before submitting the form. What is the legally acceptable procedure to correct this mistake?

  1. Draw a line through the incorrect year, write the correct year next to it, and require the applicant to initial the change.Answer
  2. B
    Draw a line through the incorrect year, write the correct year next to it, and have the producer initial the change.
  3. C
    Apply correction fluid over the incorrect year and write the correct year cleanly on top.
  4. D
    Cross out the entire question and leave it blank so the underwriting department will call to verify it.

Answer

Draw a line through the incorrect year, write the correct year next to it, and require the applicant to initial the change.
Because the application is a legal document that becomes part of the final contract, any alterations must be clearly visible and explicitly approved by the applicant through their initials. The only other acceptable alternative is to fill out a completely new application.

Step-by-Step Solution

1
Identify the legal nature of the document being completed.
The application is a legal document that forms the basis of the insurance contract.
Understanding the document's legal weight dictates how errors must be handled.
2
Determine the acceptable methods for correcting application errors under insurance regulations.
Errors can only be fixed by starting a completely new application OR by crossing out the error, writing the correct information, and having the applicant initial the change.
This prevents unauthorized alterations and proves the applicant agreed to the represented facts.

Key Concept

Correcting Application Errors
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Topics

Completing the Application

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