ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has:

In this scenario, when ABC Insurance Company accepts an application that contains unanswered questions and subsequently incorporates that application into the life insurance contract, it effectively waives its legal right to insist on complete responses to all questions prior to issuing the policy. By accepting the application as it stands, the insurer has chosen not to enforce its right to a fully completed application, which is typically considered essential for evaluating the applicant's risk profile. This indicates a level of acceptance of potential uncertainties regarding the insured's risk, since unanswered questions could lead to unknown factors that might influence the risk assessment.

The acceptance of the application despite the missing information demonstrates the insurer's decision to move forward with the risk represented by the application, which is viewed as a waiver of its right to require complete and accurate information as part of the underwriting process. This can ultimately affect the insurer’s liability and responsibilities under the contract should issues arise later based on the incomplete application.