Before a customer's agent delivers his policy, the insurer makes a last-minute change to the policy. The agent inform the customer of this change, and he accepts it. What must the agent do now?

A) If the change would affect the premium, the agent must have the customer sign a statement acknowledging the change

B) The agent should ask the customer to sign a statement acknowledging that he is aware of the change

C) Nothing. After the explanation, the agent is not legally bound to do anything else

D) The agent must notify the beneficiary of the change in policy

Question

Rory Cannon

Business

5 July, 22:30

Before a customer's agent delivers his policy, the insurer makes a last-minute change to the policy. The agent inform the customer of this change, and he accepts it. What must the agent do now?

A) If the change would affect the premium, the agent must have the customer sign a statement acknowledging the change

B) The agent should ask the customer to sign a statement acknowledging that he is aware of the change

C) Nothing. After the explanation, the agent is not legally bound to do anything else

D) The agent must notify the beneficiary of the change in policy

+4

Answers (1)

Know the Answer?

Marin Melendez · Answer 1

B, The agent should ask the customer to sign a statement acknowledging that he is aware of the change.

Explanation:

Just like in any contract, when there is a change in the details of the contract, it is mandatory that both parties are notified and that there is a document and signature confirming the acknowledgement of the changes.

So also in the case of this policy, the agent has to notify the customer of changes made to his policy and ensure the customer signs an acknowledgement of the change to avoid a breach of contract. When a customer is ignorant of a change to his policy, he can file a lawsuit against his agent and insurer depending on who is at fault.

Cheers.