If an application is incomplete, what is the likely action taken by the insurer?

When an application for an insurance policy is incomplete, the typical action taken by the insurer is to return the application for completion or postpone the underwriting process. This step is crucial because insurers need a complete and accurate application to assess the risk associated with the applicant.

An incomplete application can lead to misunderstandings about the applicant's health, lifestyle, or other pertinent information that is essential for underwriting decisions. By sending the application back to the applicant, the insurer ensures that all necessary details are provided, which is vital for determining policy terms, coverage, and premiums. This process protects both the insurer and the insured by preventing potential issues related to incomplete information or misunderstandings in risk assessment.

In contrast, issuing the policy as applied for could lead to significant issues if important information is missing. Denying for misrepresentation without a completed application would not be justifiable, as there wouldn’t be sufficient information to make that determination. Lastly, approving with a rider usually occurs when there are additional risks associated with certain disclosures, which again requires a complete application process to identify those risks.