If, after submitting an application, a producer becomes aware of a material fact that may affect the underwriting decision, the producer's ethical responsibility requires that the producer:
A.
Deny knowledge of the fact
B.
Acknowledge the fact only if asked by the insurance company
Comprehensive and Detailed Step by Step Explanation:
Ethical responsibilities and state laws mandate that insurance producers act in good faith when handling applications.
Reporting material facts to the insurer (D):Producers must disclose any information that could impact underwriting decisions. Transparency ensures that policies are accurately priced and legally enforceable.
Denying knowledge (A):Violates ethical and legal obligations.
Acknowledging facts only if asked (B):Demonstrates bad faith and can lead to legal penalties.
Advising applicants to amend (C):While this helps, it does not fulfill the producer’s duty to inform the insurer.
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit