All applications for insurance contain general questions which are also known as underwriting questions. These questions are designed to assess certain risks, need to be answered by all applicants and can be used as a reason to deny coverage. Underwriting questions serve a specific purpose and are used by all types of insurance companies on their applications.
The general questions that are contained on an application for insurance are designed to assess each individual insured’s level of risk to an insurer. General question are desinged to see how well see if an insured has good habits or is not taking care of their property. These types of questions can seem very basic and pointless to an insured that needs to answer them. However, some questions are designed to tell the insurer a little bit more about the insured as far as what they are and are not doing to comply with specific policy terms. Usually, an these questions are all a variety of yes and no answers. What the insurer is looking for is a yeas answer to specific questions.
The general questions that are provided on an application for insurance need to be answered by everyone that wants to purchase a policy. Many times these questions are not in paper form but are displayed on a computer screen. This is because many insurance carriers use the internet and rely on insurance agents to complete and then send in the completed application. Most questions on an application are designed to make sure the insured understands what is and is not required for a particular policy. Whatever the case all insurance companies use them and every insured that needs a policy will answer them.
Depending on the type of policy certain underwriting questions on an application can be used as a reason to deny coverage. This is because the insured is doing something or has something on their property that an insurer will not cover. This can be many things depending on the policy. Many insurers ask if a home has solid fuel heat such as a wood burner. On an automobile policy there may be questions that ask where the vehicle is being garaged. Some insurers prefer certain geographic areas over others. As a result some answers that are given for a specific underwriting question may make an insurer decide to deny coverage.
Questions on an insurance application can be referred to in many ways but all serve the same purpose. They are all used and required by most all insurance companies. Whether they use them to base coverage decisions or to collect information they provide valuable information to the insurance company that is providing the policy.