What is misrepresentation?

• A. Providing accurate statements on an application
• B. Providing false or misleading statements on an application or claim
• C. A warranty in the policy
• D. A premium discount

Answer: (B)

Misrepresentation means providing false or misleading statements on an application or claim. In life insurance, the insurer relies on the information you give to assess risk and set premiums. If someone lies about important facts—such as health, age, or smoking status—that’s a misrepresentation because it changes the risk the insurer is underwriting. Because of that, misrepresentation can allow the insurer to deny a claim or even void the policy if the misstatement is material to the risk. This differs from accurately stated facts, from warranties (which are strict promises in the contract), and from any premium discounts. Statements on applications are considered representations, not warranties, and misrepresentations are false or misleading statements that affect the contract.