Best Practices When Handling Applications 

Insurance applications are among the most important documents an agency will handle – and can play a key role should a problem develop with a client’s coverage. Having a procedure to ensure uniform handling of applications can help avoid action against your agency when a problem arises. 

WHAT CAN YOU DO?

• Request the application from the client with sufficient time for you to evaluate and market the risk.
• Do not delay submitting the application to the carrier(s). 
• Use the application the carrier will require for binding, whenever possible. While you may use ACORD forms or other applications for an estimate, it’s possible that terms and conditions may change once the binding application is received. 
• Get a current completed application first if you are remarketing a renewal. Using the client’s previous application could lead to problems as the data may not be an accurate reflection of the current state of the risk.
• Have your client complete the application, when possible, to help avoid accusations that the information on the application is not what was provided to you. If you must complete the application for the client:
  • Ask all questions exactly as stated on the application.
  • Require your client to review the application prior to any coverage being bound.
  • Address any incomplete information. Never guess or use default answers for common questions.
  • Always secure a signature from the client on the application – and never sign an application on behalf of the client. When requesting the signature, instruct the client, in writing, to review the application for accuracy prior to signing.
    

Questions? Please contact Tabitha DeGirolano at tabitha.degirolano@uticanational.com.