Misrepresentation on an insurance application is a ground for canceling the policy.

Question

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Misrepresentation on an insurance application is a material breach of the contract and is a valid ground for canceling the policy. Misrepresentation may include providing false or incomplete information, failure to disclose relevant information, or making fraudulent statements. Insurers rely on accurate and truthful information provided by the policyholder to assess risk and determine premiums, so any misrepresentation may affect the validity of the policy. Under such circumstances, the insurance company can cancel the policy and refuse to pay claims.

Misrepresentation on an Insurance Application Is a Ground for Canceling