An agent receives an approved life insurance policy from the insurer for a client who did not pay the initial premium when the application was completed. The agent schedules an appointment to personally deliver the policy to the client. In order for the insurance coverage to become legally effective, which of the following must occur during this delivery meeting?
- The agent must collect the initial premium and obtain a signed Statement of Good Health from the client.Cevap
- BThe agent only needs to hand over the physical policy, as constructive delivery occurred when the insurer mailed the document.
- CThe agent must collect the initial premium and provide a conditional receipt to backdate the coverage to the application date.
- DThe agent must have the client sign an application amendment confirming the delivery and the agent must countersign it.
Cevap
The agent must collect the initial premium and obtain a signed Statement of Good Health from the client.
When an applicant does not pay the initial premium at the time of application, the policy cannot go into effect until the premium is collected. Because time has passed since the medical questions on the application were answered, the agent must also obtain a signed Statement of Good Health (also known as a Statement of Continued Good Health) from the applicant to verify that their medical condition has not changed prior to coverage taking effect.
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Anahtar Kavram
Statement of Good Health and Effective Date