| Insurance applications are the first forms you'll see | | | | drivers. A few months later, he has an at-fault car |
| when buying insurance. But if you're not careful, that | | | | wreck. His car is a total loss, he is being sued for |
| application could get your claim denied. | | | | negligence, and has medical bills of $5,000. The |
| One of the first things that a claims adjuster will do | | | | investigation finds that he was separated at the time |
| when he receives your claim is ask the Underwriting | | | | of the acceptance of the application. The insurance |
| Department to send him a copy of your application. | | | | company sends him a check for $525, which is his |
| Why? Because part of his investigation of your claim | | | | returned premium, and denies the claim, stating that |
| is to verify the information found on your application. | | | | the company would not have given the policyholder |
| Lots of times, adjusters find incorrect information on | | | | the "marriage discount" had they known he was |
| applications that allow the insurance company to | | | | separated. |
| deny the claim and even void the policy like it never | | | | So, how can you protect yourself from application |
| occurred. | | | | errors? Here are six ways. |
| Let me give you a couple examples of denial that | | | | 1. Fill out the application completely. Do not leave any |
| actually happened: | | | | boxes or lines blank |
| Example #1. A man bought car insurance in 2002. At | | | | 2. Do not sign the application until all of the |
| the time their application was accepted, the only | | | | information is completed. |
| drivers were himself and his wife. They had a 10 year | | | | 3. Do not sign an application and allow the agent to |
| old daughter. In 2008, they had an automobile | | | | complete it after you leave. |
| accident. The daughter is now 16 but does not drive. | | | | 4. Once you sign the application, have the agent |
| After the adjuster did his investigation, they received | | | | make you a copy of the application right then. |
| a letter from the insurance company that denied their | | | | 5. Once you receive your new policy, compare the |
| claim. The letter said that the insured had failed to | | | | information on your application with the terms and |
| disclose a potential driver in the household. Even | | | | conditions of the policy. |
| though they disclosed their daughters name and age | | | | 6. Report changes in your policy promptly to your |
| in 2002, and the policy had renewed six times, the | | | | agent, like added drivers, deleted cars, or address |
| insurance company used a misinterpretation of policy | | | | changes. |
| language to deny a claim. | | | | If you will be very careful to do these six things, you |
| Example #2. A man applies for car insurance while | | | | can be confident that you will not have problems |
| married but separated. The application asks marital | | | | with your insurance company at claims time over |
| status, married or single. The man checks the box | | | | your application. |
| for "married." He lists both himself and his wife as | | | | |