When it comes to delivering a policy, an agent has certain responsibilities that they must adhere to. As a legal representative of an insurance company, agents are responsible for collecting the initial premium at the time of delivery if it was not paid with the application. Agents must also provide product-specific training and training materials that explain all the material characteristics of the annuity products. This includes explaining how a buyer should choose the amount and type of insurance to purchase, as well as how they can save money by comparing the costs of similar policies.
Agents must also analyze and consider any product outside their authority and license or other possible alternative products or strategies available on the market at the time of recommendation. Agents must also provide a certification when requested by the insurer, or give a clear statement that they cannot meet the criteria of certification. They must also identify and avoid or reasonably manage and disclose any significant conflicts of interest, including those related to an ownership interest. Furthermore, agents must explain any other options and provisions available to the policy owner that may be active at this time. Insurers may also hire third parties, including agents, to establish and maintain a supervisory system as required by law with respect to agents under contract or employed by the third party. This applies to life settlement transactions, which are the result of existing life insurance policies, as well as STOLI (Stranger-Originated Life Insurance) policies which are initiated for the purpose of obtaining a policy that benefits a person who has no insurable interest in the insured's life at the time of policy creation. In conclusion, when delivering a policy, an agent's responsibility includes collecting the initial premium at the time of delivery if it was not paid with the application; providing product-specific training and training materials; analyzing and considering any product outside their authority and license; providing a certification when requested by the insurer; identifying and avoiding significant conflicts of interest; explaining any other options and provisions available to the policy owner; and establishing and maintaining a supervisory system with respect to agents under contract or employed by third parties.