When is it permissible to alter a written application for a disability policy?

The correct answer is permissible for the insurer to alter a written application for a disability policy for administrative purposes. This approach allows the insurer to make necessary corrections or adjustments to align the application with its internal processes or data management systems. The alterations must be minor and should not change the substance of the application in a way that affects the policy terms or the applicant's coverage.

When it comes to altering an application by an agent or in response to noticing an error, it is generally expected that any amendments should involve proper notification and documentation to ensure transparency and consent from the applicant. This means that alterations made by an agent based solely on their discretion or verbal notification to the insured may not hold up in practice, especially if they could lead to misunderstandings or disputes regarding the policy.

The idea of an insurer altering the application to meet regulatory requirements does not typically apply in this context, as regulatory compliance usually involves adherence to established protocols rather than altering the content of an individual application after submission. Therefore, any significant changes for regulatory purposes would follow a strict process rather than a simple alteration.

In summary, alterations made by the insurer for administrative purposes are permissible as they support the integrity of the data management, while maintaining compliance with the necessary legal and ethical standards in underwriting and issuing