What should an agent do if they suspect an applicant has provided false information?

When an agent suspects that an applicant has provided false information, it is essential to report this concern to the insurer immediately. This action is crucial because false information can have significant implications for the integrity of the underwriting process and for the insurer's ability to assess risk accurately. Reporting the suspicion ensures that the insurer can conduct a thorough investigation into the matter, which may include verifying the information provided by the applicant. Such transparency helps protect both the insurance company and future clients from potential fraud. Additionally, it aligns with ethical practices and regulatory standards in the insurance industry, which prioritize honesty and accountability.

It's important to note that while consulting with the applicant or requesting additional information could provide clarity, these steps do not address the fundamental issue of potentially fraudulent behavior, and they could further complicate the situation. Simply proceeding with the application without addressing the suspicion could lead to serious legal and financial repercussions down the line. Therefore, timely reporting is the most appropriate and responsible course of action for an agent in such scenarios.