Tennessee Life Producer Practice Exam

If a customer wants to apply for an insurance policy, what is the correct action for an agent to take?

1. Send the customer to the insurance company directly

2. Complete the application and send it off immediately

3. Complete the application and review the info with the customer prior to obtaining the customer's signature, then send the application off to the insurance company

4. Submit the application online without customer involvement

The correct answer is: Complete the application and review the info with the customer prior to obtaining the customer's signature, then send the application off to the insurance company

The correct action for an agent to take involves completing the application and reviewing the information with the customer prior to obtaining their signature, then sending the application off to the insurance company. This approach is essential for several reasons. First, it ensures that the customer fully understands the details of the insurance policy they are applying for, including coverage amounts, terms, and any exclusions or limitations. By reviewing the information together, the agent can answer any questions or clarify any points of confusion, which not only facilitates a better informed decision from the customer but also helps to avoid errors that could arise from misunderstandings. Moreover, having the customer sign the application after reviewing it reinforces transparency and fosters trust between the customer and the agent. This step is also important from a compliance standpoint, as insurance regulations often require that customers have an opportunity to verify and confirm their application information before it is submitted. In contrast, options like sending the customer directly to the insurance company or submitting the application online without customer involvement do not provide the same level of service, clarity, or feedback. Completing the application without prior discussion may lead to submitted applications that are incomplete or inaccurate, potentially delaying the underwriting process or affecting the policy's approval.