What may insurance companies require from an individual’s agent regarding proposed insured information?

The requirement for a written statement disclosing any relevant adverse information is essential for insurance companies to assess risk accurately. Insurance providers rely on complete and truthful disclosures to evaluate an applicant's eligibility and to determine the terms of coverage. This written statement helps prevent insurance fraud and ensures that the insurer is fully aware of any factors that could affect the policy, such as pre-existing conditions, high-risk activities, or other pertinent information.

This approach aligns with the business practice of underwriting, where an insurance company evaluates the risk associated with insuring an individual. Having a clear, documented disclosure of adverse information establishes accountability and enables the insurer to make informed decisions when underwriting a policy. This practice is crucial to maintain the integrity of the insurance process and ensures fairness to both the insurer and the insured.