Which of the following must be disclosed by insurers during the application process?

During the application process, insurers are required to disclose all material facts that could affect the policy. This obligation ensures that applicants have complete and accurate information when making decisions about insurance coverage. Material facts can include any information that would influence an underwriter’s decision to issue a policy or determine its terms and conditions.

By providing all material facts, insurers contribute to a transparent insurance marketplace where applicants can assess their options effectively and understand the implications of the coverage they are considering. This requirement safeguards against misunderstandings and helps prevent disputes that may arise later if applicants feel they were not adequately informed at the outset.

While potential discounts, future premium increases, and claims history of the applicant are also important considerations, they do not hold the same level of materiality in relation to the initial underwriting decision. The focus of the disclosure requirement is on any information that would significantly influence the ability to underwrite the policy accurately and fairly.