Question

On Aug. 6, D submitted an application for a $50,000 Life insurance policy and did not pay the initial premium. On Aug. 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on Aug. 20 and D explains what had recently taken place with the doctor. What action should the producer then take?a- collect initial premiumb- collect initial premium along with a signed health statementc- explain to the applicant the policy is no longer in effect due to change in health conditiond- collect initial premium and leave a binding receipt

Answer 1

Answer:

B) collect initial premium along with a signed health statement

Explanation:

Since D submitted an application before he suffered from chest pains, then the producer should collect the initial premium. But the producer must also request a signed health statement which details the previous incident and what the doctor thought about it, and the tests that he requested.