What do representations refer to in an insurance application?

Representations in an insurance application refer to statements made by the applicant that they believe to be true but are not guaranteed to be true. These statements are based on the applicant's honest belief and understanding at the time they complete the application.

When applying for insurance, individuals provide information about their health, lifestyle, and other risk factors that the insurer considers in determining the terms and pricing of the policy. While these representations are assumed to be true when made, they are not the same as guarantees. If it is later discovered that a representation was false and material to the risk assessment, the insurer may have the right to rescind the policy or adjust coverage.

Understanding representations is critical for both applicants and insurers. For insurers, it helps assess risks and set appropriate premiums. For applicants, it emphasizes the importance of honesty and accuracy when providing information, as misrepresentations, whether intentional or accidental, can lead to complications in coverage later on.