Before submitting a finalized life insurance application to the home office, a producer discovers two issues: the applicant left a question regarding their participation in hazardous hobbies completely blank, and the producer accidentally transposed two digits of the applicant's phone number. What is the proper procedure for the producer to ensure this application is legally complete and accurate before submission?
- AThe producer should have the applicant initial the phone number correction, but leave the hobby question blank assuming the insurer will request the information later if deemed necessary.
- BThe producer should use their implied authority to correct the phone number and write in 'None' for the hobbies, provided they are intimately familiar with the applicant's lifestyle.
- The producer must return the document to the applicant so the applicant can answer the omitted question and personally initial the correction to the phone number.Cevap
- DThe producer must discard the current document and complete an entirely new application, because any physical alterations violate the legal principle that all applicant statements are strict warranties.
Cevap
The application must be returned to the applicant so they can provide the missing answer and initial the corrected phone number.
To maintain the legal integrity of the insurance contract, a producer must never unilaterally alter or add information to an application. Any errors or changes must be corrected and explicitly initialed by the applicant. Additionally, all questions must be answered; if an application is submitted with blank questions, the insurer will typically reject and return it, which delays coverage.
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Completing the Application: Corrections and Incomplete Forms