If an underwriter approves an incomplete application, what happens to the coverage?

When an underwriter approves an incomplete application, coverage begins. This scenario typically occurs when the underwriter determines that, despite the application not being fully completed, the information provided is sufficient to assess the risk and approve coverage. In situations like these, the insurer is essentially granting coverage based on the existing details, even though some parts of the application may still require further clarification or completion.

It's important to note that the approval does not imply that the insurer is neglecting its due diligence; rather, it indicates that the underwriter has exercised their discretion in making a judgment call about the applicant's insurability based on available information. This policy can vary between insurance companies, but typically, once an application is approved—regardless of its completeness—the insured can expect coverage to take effect.

This contrasts with options where coverage is prohibited from beginning, or where it is deferred or revoked, which do not align with the common practice of insurers once they have taken the step to approve an application, albeit incomplete.