Engagement in misrepresentation in an insurance contract means doing what?

Engagement in misrepresentation in an insurance contract refers to the act of lying or providing false information. In the context of insurance, this can occur when an individual intentionally provides incorrect details about themselves, the insured property, or other relevant aspects during the application process. Such misinformation can lead to the insurer making decisions based on inaccurate data, which can adversely affect underwriting, pricing, and claims handling.

When applicants misrepresent facts, they potentially violate the principle of utmost good faith that governs insurance contracts. This principle requires that all parties involved in the agreement act honestly and disclose pertinent information. Should a misrepresentation occur, it can lead to severe consequences such as the denial of a claim or cancellation of the policy.

While filling out forms incorrectly, failing to disclose information, or making false claims may involve inaccuracies or deceit as well, misrepresentation specifically highlights the deliberate act of dishonesty in providing information about the contract or the risk insured. The focus is on the intent and the act of providing false information rather than unintentional mistakes or omissions.