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Difficulty: EasyCompleting the Application

Agent Davis is meeting with a client to complete a health insurance application. After the client signs the document, Davis notices that the client's street address is misspelled. What is the legally correct method for correcting this mistake on the application?

  1. Cross out the incorrect address, write the correct address, and have the applicant initial the change.Answer
  2. B
    Use correction fluid to erase the mistake and neatly write the correct address over it.
  3. C
    Cross out the misspelled address, write the correct address, and have the agent initial the change.
  4. D
    Submit the application as it is written and verbally notify the underwriter of the correct address.

Answer

The correct procedure is to cross out the incorrect address, write the correct address, and have the applicant initial the change.
Because an insurance application is a legal document that forms the basis of the insurance contract, any changes made to it must be clearly visible and directly authorized by the applicant. Crossing out the error and having the applicant initial the correction is the only legally accepted method.

Step-by-Step Solution

1
Identify the error on the completed application.
The incorrect street address is noted.
Errors must be identified before the application is submitted to underwriting.
2
Make the correction visibly without hiding the original text.
The incorrect address is crossed out with a single line, and the new one is written next to it.
Using white-out or completely obscuring the original text is considered tampering.
3
Obtain the applicant's initials next to the correction.
The applicant initials the change.
This legally verifies that the applicant is aware of the change and agrees that the new information is accurate.

Key Concept

Correcting Application Errors
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Topics

Completing the Application

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