What are representations in the context of insurance applications?

In the context of insurance applications, representations are statements made by the applicant that they believe to be true, but these statements are not guaranteed to be accurate. This means that while the applicant does their best to provide honest and accurate information about their health, history, or other relevant factors, there is always a possibility that some details may be subjective or unknowingly misrepresented.

The nature of representations in insurance is crucial because they form the basis upon which the insurance company assesses risk and decides on coverage. Should it later be found that a representation was incorrect or misleading, the implications can affect claims and the validity of the policy.

Understanding that these statements are not absolute guarantees emphasizes the importance of providing as accurate information as possible during the application process. This distinction between representations and guarantees is key in the underwriting process and helps to clarify the responsibilities of both the insurer and the insured.