M applies for a health insurance policy and pays the initial premium. When the agent completes the application, a conditional receipt is left with the applicant. The insurance company's underwriting department requests M's medical records and determines that M has had asthma for many years. All of the following are probable underwriting outcomes, EXCEPT:
1) M's application is denied due to the pre-existing condition of asthma.
2) M's application is accepted with a higher premium due to the pre-existing condition of asthma.
3) M's application is accepted with a lower premium due to the pre-existing condition of asthma.
4) M's application is accepted without any changes due to the pre-existing condition of asthma.