Connecticut Life Producer Practice exam

Under what circumstance would an insured need to sign a statement of good health?

1. If the application is submitted online

2. If the first premium is not paid with the application

3. If the agent requires additional information

4. If the insured changes their mind

The correct answer is: If the first premium is not paid with the application

An insured is required to sign a statement of good health primarily when the first premium is not paid with the application. This requirement safeguards the insurer by confirming that the insured is still in good health at the time of policy issuance, as there may be a significant gap between the application submission and the actual policy's start date if the premium is not provided initially. The statement acts as a declaration reaffirming the insured's condition to ensure they still meet the underwriting criteria. In scenarios where the application is submitted online, additional information is typically not relevant to the necessity for a good health statement. Likewise, if the insured changes their mind, it pertains to cancellation or reconsideration rather than the need for a health declaration. Therefore, the most applicable situation that necessitates a statement of good health is when the first premium has not been submitted with the application.