Completing the Application, Underwriting, Delivering Policies, Contract Law
An insurer issues a policy although one health question on the application was left completely blank. What is the usual legal consequence for the insurer?
Answer and explanation
Answer: C. If an insurer issues on an application that is incomplete on its face, it is generally held to have waived the omitted information and cannot later rely on the gap to contest the policy.Source: NAIC Life Insurance Buyer's Guide — Applications: effect of issuing on an incomplete application
More completing the application, underwriting, delivering policies, contract law questions
- When a policyowner stops paying premiums, allowing a term life policy to lapse, the insurer cannot take legal action to force the owner to continue making payments. Which characteristic of insurance contracts does this limitation reflect?
- When an applicant submits a completed application WITH initial premium, what legal act does the applicant perform in contract law?
- When must an insurable interest exist in life insurance contracts under Texas law?
- Which applicant statement is best characterized as a representation?
- Which arrangement most closely describes stranger-originated life insurance?
- Which individual would be deemed legally INCOMPETENT to enter into a binding life insurance contract?
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