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Difficulty: EasySignatures and Application Changes

Producer James receives a paper life insurance application from his client, Amanda, who is applying for an individual policy on her own life. Before submitting the paperwork to the insurer, James notices that Amanda's street address is missing the apartment number. What is the legally acceptable procedure for James to correct this omission?

  1. He must have the applicant enter the missing information and place her initials directly next to the modification.Answer
  2. B
    He may call the applicant for verbal approval and then write the apartment number on the application himself.
  3. C
    He should use correction fluid to cleanly adjust the address field before forwarding it to the underwriting department.
  4. D
    He can independently write in the missing information because he possesses implied authority to correct minor administrative errors.

Answer

The correct procedure is to have the applicant enter the missing information and place their initials directly next to the modification.
The correct answer accurately reflects insurance law, which mandates that any changes to an application must be initialed by the applicant to prove they consented to the modification.

Step-by-Step Solution

1
Identify the legal status of the application.
The application is a primary legal document containing the applicant's representations.
Understanding the document's legal weight establishes why strict modification rules apply.
2
Determine the acceptable methods for changing an application.
The only acceptable methods are starting a completely new application or having the applicant initial the specific changes on the current form.
Insurance regulations require explicit, written proof that the applicant is aware of and agrees to all information submitted to the insurer.

Key Concept

Signatures and Application Changes
Estimated Time:45s
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Topics

Signatures and Application Changes

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