10-1 INTRODUCTION

The proposal, here called the application, is completed by the person who seeks insurance on a form usually drafted by the insurer. It functions as an offer to contract,1 as well as a statement of matters affecting the risk, which may induce the insurer to contract.2 The form is frequently completed by the applicant with the assistance of the insurer’s agent. This chapter considers the following questions: Who should bear the consequences of an error in the form? What is the effect of statements entered by the agent in the form which conflict with statements by the applicant to the agent, or of material facts which are disclosed to the agent but not recorded in the form?