South Carolina Insurance Practice Exam

What document might Tara the producer need to collect upon delivering a specified disease insurance policy?

1. Modified application with a new signature

2. Initial application form

3. Health assessment report

4. Payment for the policy

The correct answer is: Modified application with a new signature

In the context of delivering a specified disease insurance policy, the most appropriate document that a producer like Tara might need to collect is a modified application with a new signature. This situation often arises when there have been changes to the terms of the insurance policy or when the initial application may require updates to reflect the current health status or preferences of the insured. When delivering a policy, it is standard practice to confirm that all information is accurate and up-to-date. A modified application ensures that the insurer and the insured are both in agreement regarding the coverage being provided and that all necessary disclosures and acknowledgments are properly documented. This helps to maintain clarity and protects both the insurer's and the insured's interests. While the initial application form is important, it may not reflect the most recent changes needed for the policy delivery. A health assessment report could be relevant in some contexts, but it is typically not required at the point of policy delivery unless specifically requested or necessary for underwriting purposes. Payment for the policy is also crucial, but it generally occurs in conjunction with delivering the policy rather than being a document that would need to be collected afterward. Thus, the modified application with a new signature plays a key role in ensuring that the policy aligns with the most up-to-date and accurate