What does an insurance company do when it accepts a life insurance application that contains unanswered questions and then makes it part of the life contract?

When an insurance company accepts a life insurance application that contains unanswered questions and includes it as part of the life contract, it essentially waives its right to question those unanswered portions later on. By proceeding with the application despite the omissions, the insurer acknowledges and accepts the incomplete information, implying that any potential issues arising from those omissions cannot be used against the policyholder at a later date.

This action reflects a level of trust and good faith on the part of the insurer. It means the company has decided to move forward with the application process, perhaps viewing the risk as manageable despite the incomplete information. In doing so, they forfeit their legal right to contest a claim based on those specific unanswered questions in the future, thereby reinforcing the principle that insurance contracts are founded on mutual trust and disclosure.