The second party to the contract - the insurance company, conveys its acceptance and the contract is completed. The insurance contracts being oral contracts, the policy document is not a contract but evidence of a contract. As such, the proposal form is a more essential document than the policy itself. The proposal is the basis of the contract. The completed proposal and signed declaration by the proposer is referred to in the preamble of the policy document, thus connecting both the documents to form one enforceable contract.
Insurance contracts are contracts of good faith.
The proposer has a legal obligation to furnish information in good faith. After completion of the contract or at the time of any claim, if the proposer is found to have concealed or misrepresented fraudulently or otherwise, such breach would render the contract voidable and no claim is recoverable. However, this duty to disclose would become Utmost good faith, with regard to 'material facts'. The 'material fact' is the information, which will influence the acceptance of a proposal by the Insurance Company, and the rate of premium at which to do so. Proximity of the house to nearest river or watercourse and the distance from the nearest Fire Brigade facility.