West Virginia Insurance Practice Exam

The correct answer is that a Producer must obtain a signed statement of good health upon the delivery of a rated life insurance policy. This requirement is in place because a rated life insurance policy indicates that the applicant was considered a higher risk than the standard rate, often due to health issues or lifestyle factors. The signed statement of good health serves to confirm that the insured's health status has not changed since the application was submitted.

When the Producer delivers the policy, they are confirming that the applicant still meets the underwritten terms; the signed statement of good health is critical for the insurer to assess any potential increase in risk that could alter the terms of coverage. Without this documentation, the insurance company may face challenges in underwriting consistency and managing risk effectively. This process helps protect both the insurer and the insured by ensuring that all pertinent health information is accurately represented at the time of policy delivery.