South Carolina Life Insurance Practice Exam

What is the best method for correcting information on an insurance application when a change is needed?

1. Complete a new application

2. Ask the applicant to initial the original application

3. Call the applicant for clarification

4. Send a notification to the underwriting department

The correct answer is: Ask the applicant to initial the original application

The best method for correcting information on an insurance application when a change is needed is to ask the applicant to initial the original application. This approach is effective because it provides a clear and documented consent from the applicant indicating that they agree to the changes made. Initialing the application helps maintain the integrity of the original document, showing that the applicant has reviewed and accepted the modifications. It is essential to ensure that any alterations are authorized by the applicant to prevent misunderstandings or disputes about the information provided. This method upholds the principle of transparency and ensures that any discrepancies are properly acknowledged by the applicant, fostering trust in the process. Completing a new application is often unnecessary and can complicate the proceedings, leading to potential delays or confusion. While calling the applicant for clarification can be important, it does not provide the same level of documented consent as initialing the changes. Sending a notification to the underwriting department would not address the need for immediate correction and also lacks direct communication with the applicant regarding the changes.