Final answer:
The producer should deliver the policy as is with the impairment rider and explain the modifications to the client. The producer must ensure the client understands the changes and their implications. The client has the option to accept the revised terms or consider other available options.
Step-by-step explanation:
The correct action for a producer after receiving a policy that has been rated by the insurer with an impairment rider attached is to deliver the policy as is to the client. If the insurer rates the policy or adds an impairment rider, it means that underwriting has assessed a greater risk than originally anticipated and has adjusted the policy to account for this risk.
The producer should explain to the client why the policy has been rated or why the impairment rider has been added and what that means for their coverage and premiums. It is also essential to clarify the conditions and limitations imposed by the impairment rider. Since the policy has been officially issued, it is the obligation of the producer to ensure the client understands these changes to make an informed decision on whether to accept the revised policy terms.
In some cases, the client might not be satisfied with these changes and may wish to consider options like applying with a different insurer or asking for a reconsideration based on additional medical information or evidence that might mitigate the perceived risk.