When an insurance application is taken by a producer, which statement is accurate?

When an insurance application is taken by a producer, it is essential that any changes made on the application require the applicant's initials. This practice ensures clarity and consent, allowing the applicant to acknowledge that they are aware of and approve any modifications to the information provided. This is a critical aspect of the application process, as it helps maintain the integrity of the application and protects both the producer and the applicant. If changes were made without the applicant's acknowledgement, it could lead to disputes or issues regarding the accuracy of the information presented, which is vital for underwriting and policy issuance. Therefore, requiring the applicant's initials serves to confirm that they are in agreement with the changes made.