Rhode Island Life Insurance Practice Exam

Upon policy delivery, a signed good health statement is requested from the applicant. Why would this be necessary?

1. To verify recent changes in health status

2. To complete the legal documentation

3. To assess the risk level for premium determination

4. The initial premium was NOT submitted with the application

The correct answer is: The initial premium was NOT submitted with the application

In the context of life insurance policies, a signed good health statement is typically requested upon policy delivery to ensure that the applicant's health status has not significantly changed since the application was submitted. This requirement helps the insurer confirm that the risks associated with insuring the individual are still as originally assessed based on the information provided at the time of application. When the initial premium is not submitted with the application, the good health statement serves as a way to verify that the individual is still in the same health condition as when they applied. This is crucial because if there have been any changes in the applicant's health, the insurer may need to reassess the risk and adjust the terms of the policy accordingly, whether that involves changing the premium or even possibly denying coverage. Hence, the signed good health statement acts as both a safeguard for the insurer and a necessary step in the policy delivery process. This context clarifies why having a signed good health statement is essential at this stage, especially when the initial premium was not included with the application.