Which statement about unanswered questions on an application after policy issue is correct?

Which statement about unanswered questions on an application after policy issue is correct?

• A. They are considered waived by the insurer.
• B. They require a formal amendment to the policy.
• C. They are never considered.
• D. They are grounds for rescission.

Answer: (A)

The question tests how missing information on an application is treated once a policy has been issued. When a policy is issued and the premium is paid, any questions left unanswered on the application are treated as waived by the insurer. This means the insurer has effectively accepted the risk as it stands, and the contract remains in force despite those blanks. Why this is the best choice: the act of issuing the policy and taking the premium signals the insurer’s consent to the terms as they exist, so a blank item cannot later be used to void or alter the contract solely because that information wasn’t provided. The other options don’t fit because unanswered questions aren’t automatically amendable needs (a formal amendment isn’t required simply because a blank existed), they aren’t “never” considered (there can be under different circumstances), and blanks aren’t, by themselves, grounds for rescission.

The question tests how missing information on an application is treated once a policy has been issued. When a policy is issued and the premium is paid, any questions left unanswered on the application are treated as waived by the insurer. This means the insurer has effectively accepted the risk as it stands, and the contract remains in force despite those blanks.

Why this is the best choice: the act of issuing the policy and taking the premium signals the insurer’s consent to the terms as they exist, so a blank item cannot later be used to void or alter the contract solely because that information wasn’t provided. The other options don’t fit because unanswered questions aren’t automatically amendable needs (a formal amendment isn’t required simply because a blank existed), they aren’t “never” considered (there can be under different circumstances), and blanks aren’t, by themselves, grounds for rescission.