AD Banker Comprehensive Practice Exam

If the insurer issues a health insurance policy without an initial premium, the producer must obtain a signed:

1. Statement of Good Health

2. Standard provisions endorsement

3. Rider that the policy is acceptable

4. Statement of increased health risks

The correct answer is: Statement of Good Health

When an insurer issues a health insurance policy without collecting an initial premium, it is essential for the producer to obtain a signed Statement of Good Health from the insured. This document serves as a confirmation that the insured is still in good health at the time the policy is issued, which is crucial because the insurer is taking on a risk without receiving any immediate premium payment. The Statement of Good Health essentially protects the insurer's interests by ensuring that there have been no changes in the insured's health status that could affect their eligibility for coverage since they applied for the policy. Without this statement, the insurer has limited assurance about the risk they are covering, which could lead to potential issues down the line regarding claims and coverage. Other options, such as a standard provisions endorsement or a rider about the policy's acceptability, do not fulfill this specific need for confirming the insured's health status at the point of policy issuance. Similarly, a statement of increased health risks would not be applicable in this situation, as the focus is on verifying good health rather than identifying any existing health concerns.