Misstatements or misrepresentations in an application for insurance can affect the amount of a premium but cannot void a policy.

Question

Quizplus · Accepted Answer

Misstatements or misrepresentations in an application for insurance can not only affect the amount of a premium, but also void a policy if they are material to the underwriting decision. Insurers rely on the accuracy of the information provided by the applicant to determine the risk involved in insuring them, and if the information is false or incomplete, it can undermine the validity of the insurance contract.

Misstatements or Misrepresentations in an Application for Insurance Can Affect