What is a representation in the context of an insurance application?

In the context of an insurance application, a representation refers to a statement made by the applicant that they believe to be true based on their knowledge at the time of the application. This is a critical concept in insurance because it allows insurers to assess risk and make informed underwriting decisions. The applicant is expected to provide accurate information regarding their health, lifestyle, and other pertinent factors, as these representations play a pivotal role in determining the terms and conditions of the insurance policy.

If a representation is later found to be untrue, the insurer may have the right to deny a claim or rescind the policy, but it must be a significant misrepresentation relevant to the underwriting process. This understanding underscores the importance of honesty and transparency during the application process, as it helps foster a trustworthy relationship between the insurer and the insured.