Insurance producer Lin is finalizing a paper application for a key-person life insurance policy. The applicant is the corporation, and the proposed insured is the company's top sales director. While reviewing the document before leaving the client's office, Lin notices two issues: the CEO accidentally wrote the wrong year for the sales director's date of birth, and a standard question regarding the director's participation in hazardous hobbies was left completely blank. Which of the following actions MUST Lin take to legally and procedurally complete this application? (Select all that apply)
- Cross out the incorrect date of birth, enter the accurate year, and obtain the applicant's initials next to the change.Cevap
- BUnilaterally amend the date of birth on the application without client initials to expedite the underwriting process.
- Verbally ask the uncompleted hazardous hobbies question and record the client's exact response before obtaining final signatures.Cevap
- DSubmit the application as-is, because insurers generally treat unanswered questions as a negative response to the inquiry.
Cevap
The agent must cross out the incorrect date of birth, enter the correct year, and have the applicant initial the change. Additionally, the agent must ask the uncompleted question and record the client's response before submitting the application.
To properly complete an application, an agent must ensure the document is entirely accurate and fully answered. If an error is found, the standard legal procedure is to cross it out, write the correct information, and require the applicant to initial the correction. If a question is left blank, the agent is required to ask the applicant for the missing information and record it, as underwriters will not process incomplete applications.
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Anahtar Kavram
Application Completeness and Corrections