What does "false representation" in an insurance context mainly refer to?

In the context of insurance, "false representation" primarily refers to misrepresentation. Misrepresentation occurs when an individual provides false or misleading information to an insurer during the application process or in the context of a claim. This can lead to the insurer processing an application based on incorrect facts, which may ultimately influence the terms of coverage or the premium charged.

Misrepresentation in insurance can be either innocent or intentional. Innocent misrepresentation happens without the intent to deceive, while intentional misrepresentation involves knowingly providing false information with the aim to secure a benefit—such as lower premiums or coverage when the applicant may not qualify. Both types can impact the validity of an insurance contract and the claims process.

Other concepts related to this topic, such as concealment, involve failing to disclose pertinent information, whereas fraud is a broader term that encompasses various unlawful acts committed with intent to deceive. Waiver pertains to the voluntary relinquishment of a known right and is not associated with misrepresentation. Therefore, identifying misrepresentation as "false representation" captures the essence of providing incorrect information within the insurance realm.