While finalizing the paperwork for a new individual life insurance policy, an agent realizes that the applicant (who is also the policyowner) has made two mistakes. The applicant left the 'Primary Occupation' field blank and accidentally reversed the last two digits of their social security number. The document has already been signed. Which of the following statements correctly describe the legal and procedural rules for handling these issues? (Select two)
- The applicant must personally place their initials next to any corrections made to fix the reversed digits in the social security number.Cevap
- BThe agent may use correction fluid to completely erase the incorrect digits and write in the accurate numbers.
- If the application is submitted as-is and the insurer issues the policy without noticing the blank occupation field, the insurer waives the right to void the policy based on that missing information.Cevap
- DThe agent has the implied authority to write in the applicant's occupation as long as the applicant provides verbal consent over the phone.
Cevap
The correct statements are that the applicant must initial any corrections made to the social security number, and that the insurer waives the right to contest missing information if they issue a policy on an incomplete application.
The correct answers identify two fundamental legal requirements in the underwriting process. First, any alterations to an insurance application must be initialed by the applicant to prove they are aware of and agree to the change. Second, if an insurer receives an incomplete application but issues the policy anyway, they are legally considered to have waived their right to that missing information and cannot later deny a claim or void the policy based on the unanswered question.
Adım Adım Çözüm
Anahtar Kavram
Signatures and Application Changes