What constitutes willful misrepresentation in an insurance contract?

Willful misrepresentation in an insurance contract refers to knowingly providing false information with the intent to deceive the insurer. This type of misrepresentation is considered fraud and can provide sufficient grounds for the insurer to void the contract. It undermines the trust and good faith that are essential in the insurance relationship, as it typically involves significant details that could affect the insurer's decision to issue the policy or the terms under which it is issued.

In this context, fraud can be understood as an intentional distortion of the truth. If an applicant deliberately provides false information—perhaps regarding their health history, occupation, or risky activities—this can significantly impact the risk assessment performed by the insurer. Should the insurer later discover this intentional misrepresentation, they have the right to rescind the policy since the contract was based on false information.

The other options do not meet the criteria for willful misrepresentation, as they either involve minor details, accidental errors, or irrelevant information, none of which would typically have the same legal ramifications as clear fraudulent intentionality.