West Virginia State Life Insurance Practice Exam

When an application is taken by a producer, what statement is true regarding changes?

1. Any changes made do not require signatures

2. Changes must be documented independently

3. Any changes require the applicant's initials

4. Changes are solely at the discretion of the producer

The correct answer is: Any changes require the applicant's initials

When an application is taken by a producer, requiring the applicant's initials for any changes is an essential step to ensure that the applicant is aware of and agrees to the modifications being made. This practice is important for maintaining transparency in the application process and ensuring that the information provided is accurate and reflects the applicant’s true intentions. Initialing changes also serves as a safeguard for both the applicant and the producer. It provides clear documentation that the applicant has reviewed and consented to the alterations, which can prevent misunderstandings or disputes about the content of the application in the future. This practice upholds ethical standards in insurance transactions, ensuring the integrity of the application process.