The omission from the application may be deliberate, to hide a health condition that might have made the applicant ineligible for insurance.

NPR: Insurers Revoke Policies To Avoid Paying High Costs

If an applicant understates his income and receives a larger health-insurance subsidy than he is eligible for, the money must be paid back.

WSJ: Grace-Marie Turner: Applying for ObamaCare: Still Not Simple

Applied to fire insurance, that concept would require the insurer to charge no more for the applicant that calls with his house already on fire than for other applicants.

FORBES: Look Out Below, The Obamacare Chaos Is Coming