Rhode Island Life Insurance Practice Exam

If a customer wishes to apply for an insurance policy, what is the appropriate action for the agent?

1. Complete the application and send it without review

2. Collect a down payment before starting the application

3. Complete the application, review it with the customer, then submit it

4. Obtain customer information only verbally

The correct answer is: Complete the application, review it with the customer, then submit it

Completing the application, reviewing it with the customer, and then submitting it reflects a comprehensive and responsible approach to the insurance application process. This method ensures that all necessary information is accurately captured and understood by both the agent and the customer. It allows the customer to clarify any doubts or misunderstandings regarding the application, which is vital for ensuring that the policy reflects their needs and intentions. Involvement in the review process also helps to prevent potential issues that might arise later, such as policy misrepresentation or omitted information, which can lead to complications during claim processing. By engaging the customer in this way, the agent fosters transparency and builds trust, which are critical components of the client-agent relationship. Moreover, reviewing the application prior to submission allows the agent to ensure that all required information is included, thereby increasing the likelihood of a smooth underwriting process. Overall, this correct course of action emphasizes accuracy, communication, and customer service in the insurance application process.