South Carolina Insurance Practice Exam

Who is responsible for providing a policy summary disclosure upon delivery of a life insurance policy?

1. The insured

2. The producer

3. The insurer

4. The beneficiary

The correct answer is: The producer

The producer holds the responsibility of providing a policy summary disclosure upon the delivery of a life insurance policy. This obligation is primarily to ensure that the policyholder receives clear and concise information about the specifics of the policy, including coverage details, benefits, costs, and any significant exclusions. As an agent or broker representing the insurer, the producer plays a crucial role in facilitating the understanding of the policy's features and helping the client make an informed decision. The policy summary aids in promoting transparency and trust in the agent-client relationship, ensuring that the policyholder is aware of all necessary information that can impact their coverage and claims in the future. In contrast, the other parties mentioned do not share this responsibility. The insured is the individual covered by the policy, the insurer issues the policy and manages claims but does not personally deliver the summary, and the beneficiary is the individual designated to receive benefits from the policy and, likewise, does not have a role in providing disclosures at the point of policy delivery.