While completing a paper application for a new whole life insurance policy, the applicant accidentally writes down their previous home address instead of their current residence. What is the legally acceptable method for correcting this error on the application document?
- AThe agent should cross out the incorrect address, enter the new address, and place their own initials next to the alteration to verify the change.
- BUse correction fluid to completely erase the incorrect address so that the correct address can be written neatly in its place.
- Draw a single line through the incorrect address, write the correct address nearby, and have the applicant place their initials next to the change.Answer
- DSubmit the application with the incorrect address but attach an explanatory memo for the underwriting department detailing the new address.
Answer
Draw a single line through the incorrect address, write the correct address nearby, and have the applicant place their initials next to the change.
When a mistake is made on a paper insurance application, the only acceptable method of correction (other than starting a completely new application) is to draw a single line through the error, write the correct information, and have the applicant initial the change. This provides a clear, verifiable record of what was changed and confirms the applicant's direct consent.
Step-by-Step Solution
Key Concept
Application Error Correction Procedures