If an insurer issues a policy based on an application with unanswered questions, what can be concluded?

When an insurer issues a policy based on an application that contains unanswered questions, it generally indicates that the insurer has accepted the application as it stands, which can lead to the interpretation that they waived their right to have complete answers. By issuing the policy despite the unanswered questions, the insurer is essentially agreeing to proceed with the application without holding the applicant accountable for the lack of responses. This can create a situation where the insurer cannot later claim that the absence of those answers invalidates the policy or results in immediate denial of coverage.

The conclusion that the policy is treated as if the insurer has waived its right to those answers aligns with the principles of good faith in contract law, particularly regarding insurance contracts. Insurers are expected to clearly communicate any requirements necessary for underwriting before issuing a policy. If coverage is granted without resolving those questions, the insurer allows for the possibility that coverage will be enforced despite the omissions.

Therefore, this interpretation emphasizes the importance of the insurer's actions and the implications they have on policy validity, rather than merely stating the presence of unanswered questions.