If an insurance applicant sustains losses after submission of the application but before acceptance by the insurer,the rule in most states is that the insurer must nevertheless cover the losses.

Losses

The negative financial impact resulting from the difference between costs and revenues, often attributed to business operations, investments, or unforeseen events.

Submission

The act of presenting a document, proposal, or application for consideration or judgment.

Acceptance

Acceptance, in contract law, refers to the expression of agreement to the terms of an offer, thereby creating a binding contract between parties.