When should the agent not give the client the policy and have it updated?

• A. When there have been significant changes in the client's insurability since the application was signed
• B. When the policy premium increases
• C. When the client requests changes
• D. When the policy is due for renewal

Answer: (A)

The key idea here is that any material change in a client's insurability after the application has been signed requires reassessment before the policy is delivered. If there have been significant shifts in health, risk factors, or other insurability aspects, the insurer may re‑underwrite and adjust the policy terms or premium accordingly. Because the original underwriting decisions no longer reflect the client’s current risk, the policy should not be handed over or finalized until a fresh evaluation is completed and the policy is updated to match the current insurability. This ensures the contract accurately represents the client’s risk and avoids misrepresentation or unfair terms.

Other scenarios don’t automatically require withholding: a premium increase can be a result of underwriting changes but is addressed through the updated policy once re-underwriting is done; client-initiated changes are implemented through endorsements or riders; renewal simply updates terms at the next cycle.