L&HNationaleasy
An applicant submits an application without the initial premium. Six weeks later the policy is approved and the producer arranges delivery. Before handing over the policy and collecting the first premium, the producer must obtain from the applicant:
AA complete new medical examination conducted at the insurer's own expense before the approved policy may be delivered to the applicant
A Statement of Good Health (or Statement of Continued Insurability) confirming no material change in health since the application
CA signed waiver of the policy's statutory free-look examination period as an express condition of the applicant accepting delivery
DA newly executed HIPAA medical authorization that fully supersedes and replaces the original authorization that was signed with the application
Why this is the answer
When premium is collected with the application, the conditional receipt makes coverage retroactive to the application date. When premium is NOT collected with the application, coverage cannot begin until policy delivery and first-premium payment. During the underwriting/delivery delay, the applicant's health may change; the insurer underwrote based on application-date information. The Statement of Good Health is a signed attestation that no material adverse change has occurred. If the applicant cannot truthfully sign it, the producer must report the change to the insurer for re-underwriting before delivery.
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