Application is a written formal request by an applicant to an insurer requesting the insurer issue a policy based upon information contained in the application.

Application is a written formal request by an applicant to an insurer requesting the insurer issue a policy based upon information contained in the application.

• A. A claim form.
• B. A written formal request by an applicant to an insurer requesting the insurer issue a policy based upon information contained in the application.
• C. A policy endorsement.
• D. A premium receipt.

Answer: (B)

In insurance, the application is the formal written request an applicant submits to an insurer to issue a policy based on the information provided. This document starts the underwriting process, gathering facts about the applicant—such as age, health, and habits—to evaluate risk and set premiums. It is not used after a loss, which is what a claim form is for. It isn’t a modification to an existing contract, which would be a policy endorsement, nor is it proof of payment, which is a premium receipt. So the description precisely matches what an application is and does.

In insurance, the application is the formal written request an applicant submits to an insurer to issue a policy based on the information provided. This document starts the underwriting process, gathering facts about the applicant—such as age, health, and habits—to evaluate risk and set premiums. It is not used after a loss, which is what a claim form is for. It isn’t a modification to an existing contract, which would be a policy endorsement, nor is it proof of payment, which is a premium receipt. So the description precisely matches what an application is and does.