What action is least likely to be taken by an insurance company if an applicant with diabetes applies for a Disability Income policy?

When an applicant with diabetes applies for a Disability Income policy, the insurance company's actions are typically guided by the perceived risk associated with the applicant’s health condition. In this case, the least likely action would be to issue the policy with an altered Time of Payment of Claims provision.

The Time of Payment of Claims provision outlines when insurance benefits will be paid out, and it is a standard part of policy contracts governed by the insurance regulations. Altering this provision solely based on the applicant's diabetes is not a common practice, as it would not directly correlate with the health risks associated with the applicant.

On the other hand, insurance companies are more likely to engage in the other actions listed. For instance, they might request detailed medical records to thoroughly assess the applicant's health status and its implications for insurability and benefits. Adjusting premiums to reflect the added risk associated with diabetes is also a common approach, as individuals with chronic conditions may require more comprehensive coverage due to potential health complications. Additionally, issuing the policy with standard terms might happen in cases where the diabetes is well-managed and poses minimal additional risk.

Thus, option D stands out as the least likely outcome because it does not reflect the customary adjustments made in underwriting policies for applicants with medical conditions.