Misrepresentation in Application May Result in Coverage Denial
Rough Notes › Vol. 148 Nbr. 5, May 2005
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Summary
It is important to emphasize to insurance applicants that truth and accuracy are vital to the application process. Insurers depend on the accuracy of the information contained in that application. Omissions and misstatements in applications for all types of insurance - personal, commercial and professional - can carry serious consequences for both the insured and the provider of coverage. Lawsuits following declination of coverage have been most frequent with respect to personal insurance, notably homeowners policies and automobile policies. Insurance companies can prevent problems by emphasizing in the application that the applicant's signature testifies to the fact that the answers to questions are those of the applicant and that they are true and complete. An agent or broker can make a major contribution to the prevention of a problem by calling the applicant's attention to the Applicant's Statement above the place for his or her signature. The data in the application should be confirmed before signing. Court cases involving misrepresentation are discussed.
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Misrepresentation in Application May Result in Coverage Denial
It is important to emphasize to insurance applicants that truth and accuracy are vital to the application process. Insurers depend on the accuracy of the information contained in that application.
The applicant's signature certifies that the information was indeed supplied by the applicant. The "applicant's statement" above the signature space in a ...See the full content of this document
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