COMPLETING THE APPLICATION

Field Underwriter Responsibilities

- proper solicitation of applicants - completing the application - obtaining the required signatures - collecting the initial premium/issuing the receipts, if applicable - delivering the policy

Completing the Application:

1. Completion of application 2. Required Signatures 3. Collecting Initial Premium & Issuing the Receipt 4. Replacement 5. Disclosures at Point of Sale

3 parts of application

1. General Info 2. Medical Info 3. Agent's Report

Changes in the Application

Agents have the option (depending on which insurer they represent) of correcting the info & having the applicant initial the change, or completing a new application

Consequences of Incomplete Applications

Any unanswered questions MUST be answered before policy is issued. If policy is issued w/ questions left unanswered, the contract will be interpreted as if the insurer waives its right to have an answer to the q. they would be later barred from any right of denying coverage based on any info that the unanswered question might have developed

Required Signatures

BOTH the agent AND proposed insured (usually the applicant) must sign the application; If the proposed insured & policy owner not the same person then the policy owner must also sign the application. Exception: An adult such as parent/guardian applying for insurance for a minor

Part 1. General Info

Name, age, address, DOB, etc. Identifies type of policy applied for, & amt. of coverage; also inquires about the existing policies and if proposed insurance will replace them

Application

basic info used by the company in the risk selection process; document that provides info for underwriting purposes, after policy is issued any unanswered questions are considered waived by the insurer

Disclosures at Point of Sale

every applicant for life insurance policy must be given a written disclosure statement that provides basic info about cost/coverage of insurance being solicited; must be given to the applicant no later than the time of application for insurance is signed

Part 2. Medical Info

insured's medical background, present health, causes of death of deceased relatives; if insurance is nominal agent and proposed insured will complete medical info; for larger amounts the insurer will require some sort of medical examination by a professional

It is the agent's responsibility to :

make sure the application is fill out completely, correctly, and to the best of the applicant's knowledge

Conditional receipt

most common; says that coverage will b effective either on the date of application or the date of the medical exam whichever occurs last;

Replacement

most states require compliance w/ regulation on policy replacement

Notice Regarding Replacement

must be submitted when a replacement is involved; signed by BOTH the applicant and producer, copy must be left w/ the applicant

Underwriting

risk selection/classification process; process of reviewing, accepting, rejecting, applications for insurance; determine whether an applicant is insurable and if so, what premium to charge

Premium receipt

should be issued by the agent, whenever the agent collects premiums

Representations

statements made by the applicant on the insurance application that is believed to be true but they are not guaranteed to be true

Misrepresentations

statements made by the insured that are intentionally answered untruthfully on the insurance applications; could void the contract; the info must be material to the risk and been made in an attempt to defraud the insurance company; the questions is whether the insurance company would have rejected the applicant or modified the policy terms had it known the truth

Field Underwriter

the agent is often referred to a field underwriter bc usually the one to solicit the potential insured

Disclosure Authorization Notice

they must first provide the applicant/insured with this, when insurers plan to seek and use info from investigators; states the insurer's practice regarding collection and use of personal info. The Commissioner must approve the disclosure authorization form, and it must be written in plain language

Warranty

true statement upon which the validity of the insurance policy depends; breach of warranties can be considered grounds for voiding the policy or a return of premium

Part 3. Agent's Report

used by agent to discuss personal observations concerned the proposed insured; important that agent includes all pertinent facts concerning applicant truthfully/honestly; also includes question whether proposed insurance will replace an existing policy