Rhode Island Life Insurance Practice Exam

What happens to an incomplete life insurance application submitted to an insurer?

1. The application will be processed without issues

2. The application will be returned to the writing agent

3. The applicant will be contacted for clarification

4. The insurer will deny the claim

The correct answer is: The application will be returned to the writing agent

When an incomplete life insurance application is submitted to an insurer, it is standard practice for the insurer to return the application to the writing agent. This is because processing an incomplete application can result in inaccuracies and potential misunderstandings regarding the coverage being requested. The insurer needs all necessary information to assess the risk appropriately and to issue a policy that reflects the applicant’s intentions accurately. Returning the application to the writing agent ensures that the issues can be rectified promptly. The agent can then contact the applicant to gather the missing information, ensuring that the process is thorough and transparent. By addressing incomplete applications in this manner, insurers help to maintain clear communication with all parties involved and ensure compliance with the necessary underwriting standards. The other choices do not accurately represent the typical practices regarding incomplete applications. While contacting the applicant for clarification is a possibility, the immediate and common step is to return the application to the agent. Processing without issues would be impossible with an incomplete application, and denial of claim would occur at a later stage, unrelated to the application status.