Final answer:
The appropriate next step when an applicant reveals conditions requiring further information is to request additional information or medical records to assess the risk accurately before making a decision.
Step-by-step explanation:
When an applicant has disclosed conditions that require more information, the next step is typically to request additional information or medical records. Issuing the policy immediately or approving the application without further inquiry may not be prudent without a complete understanding of the risk the applicant represents. Declining the application may also be premature without a thorough investigation. The insurance underwriting process is designed to assess the risk of insuring an individual based on various factors including their health status. In this case, where the applicant has revealed conditions that warrant further consideration, underwriters would request more information to make an informed decision on whether to issue the policy, and under what terms.