Which term refers to misrepresenting facts when applying for an insurance policy?

Misrepresentation refers specifically to the act of providing false or misleading information during the application process for an insurance policy. This could involve omitting crucial details, exaggerating facts, or providing inaccurate statements about the risk being insured. Such actions can affect the insurer's decision to underwrite the policy and determine the appropriate premiums. Misrepresentation is generally considered a serious violation in the insurance industry because it undermines the mutual trust essential for the insurance contract.

While terms like "fraudulent application" and "false declaration" indicate dishonesty in the application process, they represent broader or more specific concepts. Deceptive underwriting pertains to the practices used by insurers to misinterpret or misrepresent risks, which is different from the applicant's role. Understanding misrepresentation is crucial for both insurance professionals and applicants to maintain transparency and integrity in the approach to securing coverage.