What is a representation in the context of insurance?

In the context of insurance, a representation refers to a statement made by an applicant about themselves when applying for insurance coverage. This can include information regarding their health, occupation, previous insurance claims, and other factors relevant to the underwriting process. These statements are crucial, as they help the insurer assess the risk associated with providing coverage. If a representation is found to be false or misleading, it can lead to the denial of coverage or the cancellation of the policy.

Understanding representations is essential for both insurers and insured parties, as they form the basis for the risk assessment and the agreement between the two. Accurate representations ensure that the insurance policy aligns with the actual risk posed by the insured, which helps maintain the integrity of the insurance system.