PSI Ohio Insurance Practice Exam

Which statement regarding incomplete applications is true?

1. The incomplete application can be finalized without any further information.

2. The insurer can accept the application with missing information added later.

3. An incomplete application cannot be processed at all.

4. Incomplete applications are always rejected immediately.

The correct answer is: The insurer can accept the application with missing information added later.

The statement that the insurer can accept the application with missing information added later is accurate because it reflects common practices in the insurance industry regarding incomplete applications. When an application is submitted without complete information, insurers often have the ability to follow up with the applicant to obtain the necessary details before making a final decision on coverage. This allows for a more flexible approach in processing applications, as it acknowledges that applicants may have difficulty providing all requested information at the time of submission. While some applications may be temporarily deemed incomplete, the insurer typically allows a process for gathering the remaining information to ensure that they have a comprehensive view of the applicant's situation. This can include reaching out to the applicant directly or allowing additional time to provide the missing details. Thus, the idea that missing information can be added later aligns well with standard operating procedures within many insurance companies, promoting efficiency and effective customer service.