Question 14

A change or modification to an accident injury policy must be approved by an officer of the insurer.

Modifications to an accident injury policy require formal approval to ensure that both the insurer and the insured are protected. This process typically involves an officer of the insurer validating any changes made to the policy.

A) May be made without the insured's knowledge

This option is incorrect because any change to an insurance policy typically requires the insured to be informed, ensuring transparency and understanding of the policy terms. Modifications made without the insured's knowledge could lead to disputes regarding coverage.

B) Can be made only if premiums are increased

This statement is misleading as changes to a policy do not necessarily have to be linked to an increase in premiums. Modifications can occur for various reasons, and the approval process does not depend solely on financial adjustments.

C) Must be approved by an officer of the insurer

This option is correct as it reflects the necessity of formal approval by an insurer's officer for any changes made to an accident injury policy. Such a requirement is in place to ensure that all modifications adhere to regulatory standards and protect the interests of both parties involved.

D) Can be made only by the insured's insurance agent

While an insurance agent may facilitate changes, they do not have unilateral authority to modify a policy. This process requires approval from the insurer's officer, making this option incorrect.

Conclusion

The requirement for any changes or modifications to be approved by an officer of the insurer ensures that all adjustments are made with oversight and in compliance with policy regulations. This protects both the insurer's interests and the insured's understanding of their coverage, rendering all other options incorrect.