State RegulationsMI specificDifficulty 1/5
A producer signs an applicant's name to a life insurance application because the applicant is on vacation and, in the producer's words, "would have signed anyway." Under M.C.L. 500.1239, this is:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.1239 of the Michigan Insurance Code prohibits forging another person's name to any insurance application, policy, or related document. Signing the applicant's signature himself is forgery regardless of the producer's belief about what the applicant would have done, because the signature on an application is the applicant's own representation and consent, and DIFS treats forgery as a ground for license revocation.
Why the other options are wrong
- A) Verbal consent does not authorize the producer to execute the applicant's signature; the act of signing another person's name is itself the forgery.
- C) Whether a premium check accompanies the application has no bearing on the forgery prohibition.
- D) Notifying the insurer cannot legalize a forged signature; the document must bear the applicant's own signature.
Memory hook
Never hold the pen for the client — signing for them is forgery.