Insurance companies employ agents / producers to go out into the field and solicit life insurance policies. These agents are required by the insurer and Tennessee law to comply with all procedures when completing an application. These steps must be taken correctly or there can be consequences to their actions.
Each agent must provide correct information about the life insurance policy that they are selling to their client. There must not be any misrepresentation or false information provided.
When an agent receives an application, he /she will go over and make sure it is completely filled out correctly and to the best of the applicants knowledge. If the agent suspects any misrepresentation in the application, they should probe the applicant with questions regarding their concerns. An agent represents the insurer, therefore, if he / she feels that there could be misrepresentation, they must inform the insurance company with their concerns.
There are a certain responsibilities that come with being an insurance agent. Some of these responsibilities include:
- Preventing adverse selection of applicants
- Using proper solicitation techniques
- Completing the entire application
- Obtaining all required signatures
- The collection of the initial premium and issuing receipt
- Delivering the policy to the client
When completing the application for the resident in Tennessee, the insurer requires the signature of the agent and proposed insured.
Any changes in the life insurance application cannot be “whited out”. If there is a mistake, a new application must be filled out or the mistake must be crossed out and initialed by the applicant.
Any questions not completely answered on the application will be returned.