What does it mean if an applicant makes a misrepresentation on their application?

When an applicant makes a misrepresentation on their insurance application, it means that the information provided is not true or is misleading. This can significantly affect the insurer's decision to underwrite the policy. If a misrepresentation is identified, particularly if it is material—meaning it would influence the underwriting process or the decision to issue the policy—the insurer has the right to void the insurance contract. Voiding the policy means that the contract is treated as if it never existed, and the insurer may refuse to pay any claims that arise while the policy is considered invalid.

Material misrepresentations undermine the trust required in the insurance relationship and can lead to substantial implications for both the insurer and the insured. It’s crucial for applicants to provide accurate and truthful information to ensure that coverage is appropriately underwritten and to maintain the validity of the insurance contract.