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Question

Difficulty: EasySignatures and Application Changes

Producer Rachel is reviewing a completed individual life insurance application with her client, David. Rachel notices that David accidentally transposed two digits in his Social Security Number. Which of the following is the legally acceptable procedure for correcting this error prior to submitting the application?

  1. Draw a single line through the incorrect digits, write the correct digits, and have the applicant initial the change.Answer
  2. B
    Use correction fluid to erase the mistake and write the correct digits to ensure the application appears neat.
  3. C
    Cross out the incorrect digits, write the correct digits, and have the producer initial the change on the applicant's behalf.
  4. D
    Submit the application as it is written and call the underwriting department to verbally provide the correct Social Security Number.

Answer

The proper procedure is to draw a single line through the mistake, write the correct information, and have the applicant initial the change.
The correct answer accurately describes the standard protocol for correcting an application: the error must be crossed out so the original text remains visible, the correction must be clearly written, and the applicant must initial the change to prove they are aware of and agree to it.

Step-by-Step Solution

1
Identify the error on the physical application before submission.
The incorrect Social Security Number is identified.
Reviewing the application ensures completeness and accuracy before it becomes a legal part of the insurance contract.
2
Apply the standard legal correction procedure for insurance documents.
The error is crossed out and the correct number is written beside it.
Using a single line preserves the original text, proving no fraudulent concealment occurred.
3
Obtain the applicant's acknowledgment of the change.
The applicant initials next to the correction.
The applicant must legally verify that they are aware of and agree to the modified representation on their application.

Key Concept

Signatures and Application Changes
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Topics

Signatures and Application Changes

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