What is the legal significance of a material misrepresentation in an insurance application?

Question

Quizplus · Accepted Answer

A material misrepresentation in an insurance application means that the information provided by the applicant is false and important in the insurer's decision to accept or reject the application. In such cases, the insurance contract is voidable at the insurer's option, which means the insurer has the right to cancel the policy and deny coverage. However, the insurer must prove that the misrepresentation was willful and intentional, not just a mistake or oversight by the applicant.

What Is the Legal Significance of a Material Misrepresentation in an Insurance