The agent is the field underwriter, the insurer's first line of defense against adverse selection. Duties:
Solicit properly and screen applicants before taking an application.
Make sure the application is complete and accurate to the best of the agent's ability, and get the required signatures.
Collect the initial premium and give the matching receipt.
Complete the agent's report, which is not part of the contract.
At delivery, if no premium was paid with the application, collect the premium and a statement of good health.
The application usually has Part 1 (general information) and Part 2 (medical information).
Two kinds of receipt when a premium is paid with the application:
Conditional receipt: coverage starts on the application date (or the medical exam date, if later), but only if the insurer finds the applicant insurable as applied for. If the applicant would not have qualified, there is no coverage and the premium is refunded.
Binding (temporary insurance) receipt: temporary coverage starts right away, even if the applicant later turns out to be uninsurable, and lasts until the insurer declines the application, subject to the limits stated on the receipt.
The CDI outline notes that binders are prohibited in life and disability insurance; a temporary insurance agreement is in effect only under the insurer's own stated conditions.