Question

"A producer does not have the authority to change a policy or waive any of its provisions". The health provision that best describes this statement is called the:

a. Non-forfeiture provision
b. Entire contract provision
c. Consideration clause
d. Misrepresentation clause

Answer 1

The statement in question refers to the 'entire contract provision' in an insurance policy, which states that the policy contains all the terms between the insurer and insured and cannot be changed by an agent.

Step-by-step explanation:

The health provision that describes the statement "A producer does not have the authority to change a policy or waive any of its provisions" is known as the entire contract provision. This provision indicates that the insurance policy, including all its endorsements and attached papers, constitutes the entire contract between the insurance company and the policyholder. Hence, the producer or agent does not have the power to alter or waive any terms of the policy unilaterally.