Question

When an insured completed his health policy application, his producer did not take a premium when he submitted it to the insurer. When the producer delivers the policy to the applicant, he needs to do all of the following EXCEPT:

A) Explain the policy provisions and benefits.

B) Obtain the premium payment.

C) Confirm the effective date of the policy.

D) Provide contact information for the insurance company.

Answer 1

At policy delivery, a producer should explain the policy, obtain the premium, and confirm the start date, but providing contact information for the insurance company is usually not necessary as it should be included in the policy.

Step-by-step explanation:

When an insured completes their health policy application and the producer, later on, delivers the policy without initially collecting a premium, the producer needs to fulfill several important tasks except for providing contact information for the insurance company. This is usually unnecessary as the policy itself should include this information. The tasks a producer should complete at policy delivery include explaining the policy provisions and benefits, obtaining the premium payment, and confirming the effective date of the policy. An insurance premium is the payment made to an insurance company for coverage, which ensures that the insurance firm can cover claims made under the policy. It's essential to note that not every individual will receive benefits equal to what they pay in premiums because insurance operates under the principle that the average benefits paid out will equal the average premiums collected from all policyholders.

Answer 2

The producer delivering a health policy needs to explain the policy, obtain the premium, and confirm the effective date, but does not need to provide the insurance company's contact information.

The correct answer is D) Provide contact information for the insurance company

Step-by-step explanation:

When a producer delivers a health policy to an applicant, one of the tasks that he should not necessarily be required to do is provide contact information for the insurance company. The producer's responsibilities typically include explaining the policy provisions and benefits, obtaining the premium payment, and confirming the effective date of the policy. However, contact information is usually already included within the policy documentation, and hence it is not a priority for the producer to provide.