In order for an insurance company to determine if it will issue a policy, What document must always be submitted for review?

• A. The Application
• B. The Premium History
• C. The Medical Exam Summary
• D. The Replacement Notice

Answer: (A)

The main idea here is underwriting and how a policy is issued. To determine whether insurance will issue a policy, the starting point is the information the insurer collects about the proposed insured. That information is gathered in the application. The application provides essential details—age, health history, lifestyle, may include riders, and the requested coverage amount—so underwriters can assess risk and decide if the applicant meets the insurer’s criteria and what premium to charge. Without the completed application, the insurer has no basis to evaluate insurability or pricing.

The other documents aren’t universally required for every new issue. A premium history is relevant when evaluating existing policies or potential replacements, not for the initial decision on a new issuance. A medical exam summary may be obtained if the underwriting process requires it, but many policies can be approved with or without a prior exam, depending on the policy type and the applicant’s information. A replacement notice is needed only when replacing an existing policy with a new one, not with every new application.