South Carolina Life Insurance Practice Exam

If an applicant does not receive his or her insurance policy, who would be held responsible?

1. The insurer

2. The agent

3. The broker

4. The underwriting department

The correct answer is: The agent

The agent would be held responsible if an applicant does not receive his or her insurance policy. This accountability stems from the agent's role in facilitating the transaction between the insurer and the applicant. The agent is typically tasked with ensuring that the application process runs smoothly and that the policy documents are communicated and delivered appropriately to the applicant. The agent's responsibilities include following up on the status of the application and ensuring that the policy is issued and received by the client. If there is a failure in receiving the policy documents, it is within the agent's purview to address and rectify the issue. They serve as the primary point of contact for the applicant and are responsible for bridging any gaps in communication that may occur during the policy issuance process. While the insurer is ultimately responsible for issuing the policy, and the underwriting department plays a crucial role in evaluating and approving the application, the agent is the direct link between the applicant and the company. Therefore, if the applicant has not received the policy, it is the agent's duty to follow up and ensure that it is delivered.