Arrange the following steps in the correct chronological order that a producer must follow when a mistake is discovered on a life insurance application before it is submitted to the insurer.
- 1Contact the applicant to notify them that an error or omission needs to be corrected.
- 2Meet with the applicant to accurately correct the error on the application form.
- 3Have the applicant place their initials directly next to the corrected information.
- 4Submit the fully completed and properly initialed application to the underwriting department.
Answer
The correct sequence is: contact the applicant, correct the error together, have the applicant initial the change, and then submit the application.
When an error is found on an insurance application, strict field underwriting rules apply. The producer must first contact the applicant. The error must be corrected with the applicant's knowledge, and the applicant must initial the change to prove they consented to the alteration. Only after these steps are completed can the application be submitted to the insurer.
Step-by-Step Solution
Key Concept
Correcting Application Errors
Estimated Time:1m 0s