What must a policyholder disclose when applying for insurance?

When applying for insurance, a policyholder is required to disclose health and lifestyle information because this information is critical for the insurer to assess risk and determine appropriate coverage and premiums. Insurers need to understand any potential health risks or lifestyle factors that may impact the likelihood of a claim being made. This includes details such as pre-existing medical conditions, engagement in high-risk activities, or lifestyle choices that could affect health.

While past claims history is also relevant, it is usually part of a more comprehensive assessment that includes multiple factors, not just claims history alone. The preferred payment method and the name of the insurance agent are not typically essential for the underwriting process and do not affect the risk assessment that dictates coverage terms. Hence, health and lifestyle information is central to forming a proper risk profile for underwriting the policy.