What does misrepresentation mean in the context of insurance?

Misrepresentation in the context of insurance refers to the act of deliberately providing false information about a risk or claim. This can occur during the application process or when a claim is made. When an individual or entity misrepresents facts, it can lead to significant consequences, including the denial of coverage or claims, as insurers rely on the truthfulness of the information provided to assess risk accurately and determine premiums.

This definition underscores the importance of honesty and transparency in all insurance transactions, as any false representation can undermine the integrity of the insurance process and potentially damage relationships between insurers and policyholders. Misrepresentation is not simply a mistake or a misunderstanding; it involves intentional deceit, which is why it carries serious implications in the insurance industry.