Insurance companies employ underwriters to assess how risky it is to insure people. They will review your application and decide how much cover they are willing to provide you with and how much you will have to pay in premiums.

For most people, the underwriter will simply confirm that you can be accepted for the amount and type of cover you requested at the rate determined by your personal circumstances. If the underwriter feels the application cannot be accepted at this point, they might:

• Obtain further information to help them make a decision
• Add extra terms and conditions to the policy
• Ask you to pay higher premiums
• Decline your application if the risk is considered too high

The questions asked in an application form help underwriters build up a picture of how likely you are to make a claim. That’s why it’s so important that you read each question carefully and ensure you don’t leave any important details out.