An applicant, in the context of insurance, refers to an individual, group, or entity that is seeking to obtain an insurance policy. This person or entity applies to an insurance company for coverage and is therefore known as the applicant.
The applicant initially fills out an application form provided by the insurance company, which includes detailed information about the applicant’s personal details, health status, lifestyle, occupation, and other factors relevant to the type of insurance sought. This information is used by the insurance company to assess the risk associated with insuring the applicant and to determine the terms and cost of the insurance policy.
It’s important to note that the applicant may not necessarily become the policyholder. For instance, a parent may apply for a life insurance policy on behalf of a child, making the parent the applicant and the child the insured. Similarly, in a business setting, a company may apply for insurance coverage for its employees, making the company the applicant and the employees the insured.
The applicant is responsible for the accuracy and completeness of the information provided in the application. Any misrepresentation or omission may lead to denial of a claim or cancellation of the policy.