What happens if an insurance applicant does not include the initial premium in their application?

When an insurance applicant does not include the initial premium with their application, the insurer typically waits until the premium is received before proceeding. This is because the initial premium is often required to activate the policy and ensure that there is coverage in place. The insurer's decision to wait allows them to review the application and finalize their underwriting process once they receive that initial payment. This process also ensures that both the applicant and the insurer have a mutual understanding that the coverage will only become effective once the necessary premium is collected.

In this context, applications that lack the initial premium are not automatically rejected, nor are they held indefinitely without further action. Instead, the insurer might communicate with the applicant to request the premium or clarify that the policy is contingent upon the payment. The policy is not issued without the premium, as issuance generally means that the applicant is covered from that moment onward, which cannot occur without payment.