AD Banker Comprehensive Practice Exam

When delivering a policy, what other requirement must an agent obtain if the premium payment is to be collected at that time?

1. A statement of good health

2. Postage and handling fees

3. An affidavit from the applicant

4. Additional payment reflecting lost interest

The correct answer is: A statement of good health

When an agent delivers a policy and collects the premium payment at that time, it is important to obtain a statement of good health from the applicant. This requirement ensures that the insured's health status has not changed since the application was submitted. The purpose of obtaining this statement is to confirm that the individual is still eligible for coverage based on the health information provided during the underwriting process. If the applicant's health has deteriorated significantly since the application was submitted, the insurer might have concerns about insuring the individual under the same terms. Therefore, the statement of good health acts as a safeguard for the insurer, allowing them to assess the risk accurately before finalizing the policy. The other options, while relevant in certain contexts, do not layer the critical necessity of confirming the applicant's current health status at the time the policy is delivered along with the premium payment.