Insurance Application Process

Summary

This practice note discusses both fundamental and more advanced concepts involving insurance applications. The discussion includes the similar methods of applying for insurance applicable to individuals and business entities, and considerations about the significance of statements made in applications. These issues can include whether application statements will be considered material or immaterial representations, or whether they will be considered warranties. Further, depending upon how they are characterized, such statements can affect the enforceability of the insurance contract. The discussion also includes the role that applications play in creating an insurance contract and various issues and areas of potential dispute with respect to binders.