What must be indicated when prior insurance exists?

Always indicating prior insurance is critical in the context of managing risk and understanding a potential client's insurance history. When prior insurance exists, it provides valuable insight into the insured's past coverage, claims history, and overall risk profile. Insurers use this information to assess the likelihood of future claims and to determine appropriate coverage options and premiums.

Failing to disclose prior insurance can lead to complications such as misunderstandings about coverage limits or eligibility for certain types of policies, which could ultimately result in denied claims or insufficient coverage. Thus, clearly indicating prior insurance is an essential practice in the insurance process, ensuring transparency and helping the insurer make informed decisions regarding the new policy.