Life License Qualification Program (LLQP) Practice Exam

What provision states that the agent does not have the authority to change the policy or waive any of its provisions?

1. Legal Actions

2. Insurance with other insurers

3. Entire Contract

4. Reinstatement

The correct answer is: Entire Contract

The provision that indicates the agent does not have the authority to change the policy or waive any of its provisions is the Entire Contract provision. This provision highlights that the insurance policy, along with the application and any riders or endorsements, represents the complete agreement between the insurer and the policyholder. This means that any modifications or exceptions to the policy must be documented in writing by the insurer; the agent, while providing service and facilitating the policy, cannot alter the terms of the contract or waive conditions. The Entire Contract provision ensures that policyholders have a clear understanding of their coverage and extends protection against unauthorized changes by agents, thereby reinforcing the importance of maintaining consistent terms and conditions. This clarity helps prevent disputes regarding what is covered under the policy and maintains the integrity of the contractual relationship. Other options, while relevant to the insurance context, do not directly address the agent's authority. For example, the Legal Actions provision refers to the time limits and procedures for bringing forth legal actions under the policy, while Insurance with other insurers pertains to the rules around holding multiple policies. The Reinstatement provision deals with the conditions under which a lapsed policy may be reinstated. These provisions do not speak to the authority of an agent regarding changes to the policy itself.