What is the correct procedure for an agent taking an insurance application?

The correct procedure for an agent taking an insurance application involves ensuring that any alterations or corrections made during the application process are properly acknowledged by the applicant. When the applicant initials any changes made on the application, it signifies their awareness and agreement to those modifications. This step is crucial for maintaining the integrity of the application and avoiding potential disputes later on regarding what was disclosed.

It’s important for applicants to be actively involved in the process, which includes recognizing and approving any amendments. This also helps in upholding transparency and trust between the agent and the applicant, ensuring that all information is accurately represented.

Other approaches, such as having the agent complete the application without consulting the applicant or initialing changes solely by the agent, do not provide the necessary engagement and acknowledgment from the applicant, which is essential in the insurance application process. Additionally, while having the applicant sign an acknowledgment of changes might seem sufficient, it is the act of initialing changes that provides direct confirmation from the applicant regarding those specific modifications. Therefore, ensuring that the applicant initials any adjustments made on the application is the proper and best practice.