Ace the Chartered Life Underwriter Challenge 2026 – Secure Your Success and Dominate the Exam!

An underwriting duty of an agent primarily revolves around activities that contribute directly to the assessment of risk and the initiation of the insurance contract. Completing all applications and collecting initial premiums fall squarely into this realm. When an agent completes an application, they are gathering critical information that underwriters use to evaluate the risk associated with insuring an individual or entity. This must be done accurately to ensure that the insurance company can make informed decisions regarding coverage.

Moreover, collecting initial premiums is essential because it not only signals the commitment of the policyholder but also secures the contractual relationship necessary for underwriting to proceed. Without the premium payment, the underwriting process cannot be finalized, as the insurance company has not yet received the necessary funds to cover the insured risk.

In contrast, reviewing claims for authenticity typically involves assessing claims after the fact, rather than during the underwriting phase. Maintaining policy records, while crucial for the operation of an insurance agency, does not directly relate to the initial assessment of a risk or the binding of coverage. Conducting customer satisfaction surveys is focused on post-sale feedback and relationship management, further removing it from the duties associated with underwriting. This distinction highlights why completing applications and collecting initial premiums is the correct choice in this scenario.