Misrepresentation

Misrepresentation occurs when false, incomplete, or misleading information is provided to an insurance company, either intentionally or unintentionally, during the application process or while a policy is active. It can involve misstating or omitting facts related to medical history, lifestyle, occupation, or any other information that could influence the insurer’s decision to issue coverage or determine premiums.

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In insurance law, misrepresentation is considered a serious matter because it undermines the insurer’s ability to accurately assess risk. If a misrepresentation is discovered, the insurer may deny a claim, cancel the policy, or declare it void from the start (void ab initio). The severity of the consequences depends on whether the misrepresentation was innocent, negligent, or fraudulent.

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Example:

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If an applicant fails to disclose that they smoke when applying for life insurance, and later dies from a smoking-related illness, the insurer may deny the death benefit due to material misrepresentation.

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What to Watch For:

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Always provide complete and truthful information on all insurance applications and renewal forms. If you are unsure whether a detail is relevant, disclose it and let the insurer decide. Review your policy documents after approval to ensure that all recorded information matches what you submitted. Even unintentional omissions can affect claim eligibility if they are deemed material to the risk assessment.