West Virginia State Life Insurance Practice Exam

What must happen to any changes made to an insurance application after it has been submitted?

1. They must be approved by the underwriter

2. They require the applicant's initials

3. They do not need any approval

4. They can be made verbally

The correct answer is: They require the applicant's initials

When changes are made to an insurance application after it has been submitted, it is crucial that the applicant's initials are required on those modifications. This practice ensures that the applicant acknowledges and agrees to the changes being made, maintaining transparency and consent in the insurance process. Initialing changes serves as a safeguard for both the insurer and the insured, helping to avoid any future disputes regarding alterations made to the application. Furthermore, requiring the applicant’s initials confirms the integrity of the application process, as it validates that the applicant is aware of and accepts the revisions, solidifying their commitment to the accuracy of the information provided. This protocol is essential for upholding the ethical standards and legal requirements that govern insurance applications. In the context of insurance practices, such attention to detail in documentation plays a vital role in the underwriting process and the issuance of a policy.