Montana State Life Insurance Practice Exam

What should an agent do if they make a mistake on an application while the applicant is present?

1. Complete a new application with the correct information

2. Correct the errors and have the client initial the changes

3. Apologize and submit the application as is

4. Notify their supervisor and wait for instructions

The correct answer is: Correct the errors and have the client initial the changes

When an agent makes a mistake on an application while the applicant is present, the appropriate course of action is to correct the errors directly in the application and have the client initial the changes. This process helps to maintain a clear and honest record of the information being submitted, ensuring that both the agent and the applicant agree on what is being communicated to the insurance company. Having the client initial the corrections signifies their acknowledgment of the changes, which helps to avoid any potential disputes or misunderstandings in the future. It also reinforces transparency in the application process, building trust between the agent and the applicant. Preparing a new application, while sometimes necessary in other contexts, can be inefficient if the errors can be easily corrected and may lead to unnecessary delays. Simply submitting the application with errors or waiting for instructions from a supervisor could also lead to complications or misunderstandings between the agent, the applicant, and the insurance provider.