Louisiana P&C Adjuster Practice Exam 2026 – The All-in-One Guide to Exam Success!

The failure of an applicant to disclose pertinent information during the application process typically leads to a denial of coverage. Insurance companies rely on the information provided by applicants to assess risk and determine the appropriate terms of coverage. When an applicant withholds critical information, this can be seen as misrepresentation or material non-disclosure.

In such cases, if a claim arises, the insurer may determine that had they been aware of the undisclosed information, they would not have issued the policy or would have issued it under different terms. Consequently, they may deny the claim based on the premise that the contract was not valid due to the lack of accurate information during underwriting. This emphasizes the importance of full and honest disclosure in obtaining and maintaining insurance coverage.