An insurance applicant submits an application with a premium. after underwriting, the insurer sends back the policy, rated, with an impairment rider. what should the producer tell the applicant at delivery?

Explanation:

        In the context it is given that the insurer of the insurance company sends back the applicants rated policy with a rider which is impaired.

        A rated policy is defined as that insurance policy which is applicable to that person who have less than the average health. In rated policy the premium is considerable more than the standard insurance policy.

        Now the producer of the sent back rated policy should explain the issue to the applicant that the premium to be paid should be more and then collect the additional premium amount from the applicant.

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