On Aug. 6, D submitted an application for a $50,000 life insurance policy and did not pay the initial premium. On Aug. 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on Aug. 20, and D explains what had recently taken place with the doctor. What action should the producer then take?
a) Collect the initial premium.
b) Collect the initial premium along with a signed health statement.
c) Explain to the applicant that the policy is no longer in effect due to a change in health condition.
d) Collect the initial premium and leave a binding receipt.