What does the notice to the applicant inform them regarding their health insurance application?

The notice to the applicant informs them that a credit report will be ordered as part of the insurance application process. This is a standard procedure in the underwriting process for many insurance companies. The purpose of obtaining a credit report is to assess the applicant's financial responsibility and reliability, which can provide insight into their overall risk profile.

This practice helps insurers make informed decisions regarding the issuance of a policy and the terms associated with it. Understanding that a credit report will be ordered is important for applicants, as it provides transparency about how their information will be evaluated and helps them prepare for any potential implications regarding their insurance coverage.

The other options do not accurately reflect what the notice typically communicates. For instance, free insurance policies are not standard; submitting additional medical records may not always be required; and automatic approval is not common as all applications usually undergo a review process before a decision is made.