Producer Sarah arrives at a client's home to personally deliver a newly issued whole life insurance policy. When the application was originally completed three weeks ago, the client chose not to pay the initial premium. In order to legally establish the effective date of coverage during this visit, which of the following must Sarah secure from the client?
- The initial premium payment and a signed Statement of Good Health.Cevap
- BOnly the initial premium payment, because the underwriter has already evaluated and approved the client's health risk.
- CA signed delivery receipt and the client's verbal promise to mail the premium within thirty days.
- DOnly a signed delivery receipt, because the producer can use implied authority to activate the coverage immediately without payment.
Cevap
The initial premium payment and a signed Statement of Good Health.
When an applicant does not pay the initial premium at the time of application, no conditional receipt is issued and coverage is not bound. For the policy to become effective, the producer must deliver the policy, collect the initial premium, and obtain a signed Statement of Good Health from the applicant confirming that their medical condition has not changed since the application was completed.
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Anahtar Kavram
Delivery Requirements for Unpaid Applications