Chartered Life Underwriter Practice Exam 2025 - Free CLU Practice Questions and Study Guide

A change in an insurance application must include an initial made by the applicant because this serves as an acknowledgment of the modification. By providing their initial, the applicant is effectively consenting to the changes made. This step is crucial in maintaining the integrity of the application process, ensuring that the applicant is aware of any alterations and is in agreement with them.

Having an initial also provides a clear record of what the applicant agrees to if any disputes arise later regarding the terms or conditions of the policy. This practice helps protect both the insurer and the applicant against misunderstandings.

In contrast, while the signatures of the applicant or producer, or an amendment by the insurer, can play important roles in the overall insurance process, they are not specifically required for making a change to the application itself. The focus on the applicant's initial ensures the personal acknowledgement of the modification, which is central to the integrity of the application.