An applicant makes an innocent mistake on an application for homeowners insurance. The insurer issues the policy based on information supplied by the applicant. What is the insurer's responsibility to the policyholder after it discovers the incorrect information?
An applicant makes an innocent mistake on an application for homeowners insurance. The insurer issues the policy based on information supplied by the applicant. What is the insurer's responsibility to the policyholder after it discovers the incorrect information?
A)
The insurer is still required to fulfill the terms of the policy.
B)
The policy is voided, but the insurer may issue a temporary policy until the applicant completes the application process again.
C)
The policy is null and void.
D)
The policy is valid, but the agent is responsible for any loss that the policyholder tries to replace.
Answer: a
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