South Carolina Life Insurance Practice Exam

If an agent fails to obtain the applicant's signature on an application, what is the next step for the insurer?

1. Revise the application independently

2. Call the applicant for verbal confirmation

3. Send the application back to the applicant for signature

4. Proceed without the signature

The correct answer is: Send the application back to the applicant for signature

When an agent fails to obtain the applicant's signature on a life insurance application, the insurer's appropriate action is to send the application back to the applicant for signature. This step is crucial because the signature signifies the applicant's consent and acknowledgement of the information provided in the application. It also serves as a legal safeguard, ensuring that the applicant understands the terms and conditions associated with the policy. By returning the application for signature, the insurer upholds its responsibility to collect all necessary documentation correctly. This not only maintains the integrity of the underwriting process but also protects both the insurer and the applicant from any future disputes regarding the authenticity of the application. Obtaining a signature is a fundamental requirement in the insurance process, as it confirms that the applicant has provided accurate information and agrees to the terms outlined. This is an essential legal and compliance step that verifies the legitimacy of the insurance contract.