What is a consequence of not completing an application correctly?

Not completing an application correctly can lead to the provider assuming that any missing information is not material, which means they may overlook the significance of certain details that could affect the underwriting process. Insurance companies rely on the information provided in the application to assess risk accurately and determine coverage eligibility. When an application is incomplete or incorrect, it can lead to misunderstandings about the applicant's health history or risk factors.

In this scenario, if the insurer assumes that incomplete information is non-material, they might issue a policy under false pretenses, which could lead to issues later, such as claims being denied or the policy being rescinded after discovery of the truth. This highlights the importance of every detail and answer in the application, as accurate and complete information allows for better risk assessment and the appropriate response from the insurer.