What term is used for an intentional misstatement of fact in an insurance application?

The term that accurately describes an intentional misstatement of fact in an insurance application is misrepresentation. In the context of insurance, misrepresentation occurs when an applicant provides false information or conceals important facts that are relevant to the insurer's decision to provide coverage. This can significantly affect the underwriting process, as insurers rely on the information in applications to assess risk and determine policy terms.

Misrepresentation can have serious consequences; if discovered, it can lead to denial of claims, rescission of the policy, or even legal penalties. It’s essential to provide truthful and complete information on an insurance application to ensure that coverage is valid and enforceable.

Understanding this term helps clarify the responsibilities of an applicant when applying for insurance and the importance of transparency in the insurance process.