North Carolina Life Agent Practice Exam

When an agent signs a blank insurance contract application, it indicates that the application is incomplete and lacks crucial information needed for underwriting and policy issuance. This action can lead to serious legal implications, as it reflects negligence on the part of the agent in fulfilling their duty to provide accurate and complete information on behalf of the applicant.

Specifically, signing a blank application can be seen as committing a misdemeanor because it violates the regulatory standards set for agents in the insurance industry. Agents are expected to act with a level of professionalism and adherence to legal guidelines, and signing a document that is not fully completed misrepresents the applicant's true intentions and disclosures, potentially leading to misappropriation of funds or fraudulent practices.

The other choices do not accurately reflect the implications of signing a blank application. A voided policy implies that the contract has no legal effect, which is not an automatic consequence of this action. Insurer liability for claims typically arises from issued policies, not incomplete applications. Lastly, automatic approval for the applicant is not a function of the agent's signature on a blank application, as approvals must be based on comprehensive information and underwriting criteria.