As a general rule, if an applicant suffers a loss after applying but before the insurer formally accepts the application, the:

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A common problem that occurs in insurance law is the effect of the insurer's delay in acting on the application. As a general rule, the insurer's delay does not constitute acceptance. Therefore, if an applicant suffers a loss after applying but before the insurer formally accepts the application, the insurer need not pay.

As a General Rule, If an Applicant Suffers a Loss