While auditing his files before sending them to the home office, insurance agent Marcus notices a blank field on a newly signed whole life application. The applicant and policyowner is Arthur, who is purchasing coverage for his 12-year-old grandson, Leo. Arthur has already provided his signature on the paperwork. The unanswered question asks if the proposed insured currently has any other active life insurance policies. Because Marcus is a close family friend, he knows with certainty that the boy has no other coverage. What must Marcus do to legally proceed with this application?
- Arrange for Arthur to answer the omitted question and properly initial the addition, or have Arthur fill out an entirely new application.Cevap
- BCheck the correct box himself relying on his factual knowledge, because agents hold implied authority to resolve minor administrative omissions.
- CFill in the missing information and sign his own initials next to the change, acting as the authorized representative of the applicant.
- DForward the paperwork to the insurer as it is, since underwriters will routinely issue a policy even if standard background questions are left unanswered.
Cevap
The proper procedure is to arrange for the applicant to answer the omitted question and properly initial the addition, or to have the applicant fill out an entirely new application.
Insurance regulations strictly prohibit producers from unilaterally altering, adding to, or correcting a signed application. Any changes or additions to an application must be made with the full knowledge of the applicant, who must initial the change to verify its accuracy. If this is not feasible, a completely new application must be filled out and signed.
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Signatures and Application Changes
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