What authority does a life insurance agent have concerning applications?

A life insurance agent's primary authority in managing applications centers around the processes of soliciting, receiving, and forwarding those applications to the insurance company. This responsibility is crucial because the agent acts as an intermediary between the client and the insurer. They are trained to assist clients in understanding their insurance needs and completing the application process correctly. Once the application is completed, the agent submits it to the insurance company for consideration, which initiates the underwriting process.

The other options are outside the typical scope of a life insurance agent's authority. Underwriting is a function that is exclusively performed by the insurer's underwriting department, which assesses the risk and determines policy terms and eligibility based on the completed applications submitted. While agents can help clients with certain aspects like risk assessment, they cannot make decisions to underwrite applications themselves.

Negotiating policy terms directly with clients also falls outside the agent's authority. Any negotiations regarding the policy terms must align with the guidelines set by the insurance company, which the agent represents. This ensures that all terms are consistent with the insurer's standards and policies.

Lastly, issuing policies without insurer approval is not permitted. Agents must always operate within the legislative framework that stipulates that issuance is contingent on the insurer’s evaluation and decision-making process. This