Rhode Island Life Insurance Practice Exam

What document must a Producer obtain upon delivery of a rated life insurance policy?

1. Signed HIPAA disclosure

2. Application for additional coverage

3. Policy summary document

4. Premium payment receipt

The correct answer is: Signed HIPAA disclosure

When a life insurance producer delivers a rated policy—meaning the policy has been issued with an extra premium due to the insured's health risks—it is essential to obtain a signed HIPAA disclosure. This document allows the insurance company to access the protected health information of the applicant, ensuring compliance with privacy laws. The disclosure must be signed at the time of policy delivery to confirm that the applicant understands how their health information will be used and shared in the underwriting and rating process. This step safeguards both the insurer and the insured, as it protects personal health information while adhering to legal requirements. The rating process often involves considerations of health issues that could affect insurability or premium amounts, making this disclosure critical. While the other options may have relevance in life insurance transactions, they do not fulfill the legal requirement specific to the delivery of a rated life insurance policy as effectively as the signed HIPAA disclosure does. The application for additional coverage and the policy summary document do not directly address the patient's privacy rights regarding health information, and while a premium payment receipt is important for financial transactions, it does not pertain specifically to the delivery of a rated policy.