5.3.3 Part III - Agent's Report
Through Part III, the agent becomes the eyes and ears of the underwriter. The agent in the field is usually the only one in the company who can physically observe the parties involved; and therefore, his observations are extremely important to the fact-finding underwriter.
Why is it important that the agent carefully ask the applicant each question on the application and see that the answers are correctly stated?
The policy is issued based on the statements and agreements contained in the application. The insured or a beneficiary may not have a valid claim unless the questions have been answered truthfully and correctly on the application.
The agent's report also must state if the policy being applied for is a replacement policy. (See "Florida Replacement Rule" in the Florida-specific section, Lesson 19.)
