What method should an insurer use to protect itself in the event of a dispute regarding changes made in a completed application?

When an insurer makes a change to a completed application, it is crucial to ensure that there is a clear and documented agreement on those changes. Having the applicant initial any modifications made to the application serves as a form of acknowledgment and consent from them. This indicates that the applicant is aware of the changes and agrees to them, which can be critical if a dispute arises later regarding the content of the application.

By requiring initials next to any alterations, the insurer creates a more robust record that substantiates the final terms and conditions as understood by both parties. This practice minimizes ambiguity that could lead to misunderstandings or claims of unauthorized changes. It provides clear evidence that both the insurer and the applicant concurred on the specific details at the time of the application submission, which can be invaluable in the event of any subsequent disputes.