What is a primary reason for the insurer to verify representations made on an application?

The primary reason for an insurer to verify the representations made on an application is to make informed underwriting decisions. Underwriting is the process through which an insurance company assesses risk and determines whether to accept an application for insurance coverage. Accurate representations are critical because they help the underwriter evaluate the potential risk associated with insuring an applicant.

If the information provided is incorrect or misleading, it could lead to an improper assessment of risk, which may result in higher than necessary premiums or the undue rejection of applicants who are actually eligible for coverage. By verifying the representations, the insurer ensures that they have a complete and accurate picture of the applicant's risk profile, which ultimately influences the decision on whether to issue a policy, as well as the conditions of that policy.

The other options may relate to aspects of the insurance process but do not capture the central role that underwriting plays in assessing risk based on the information provided in an application. Pricing policies correctly and determining eligibility for benefits are downstream consequences of the underwriting process, while learning about the insured’s past experiences is part of the information gathering but not the main focus of verification.