What are representations in an insurance application?

Representations in an insurance application refer to basic statements that the insured believes to be correct at the time the application is submitted. When applying for insurance, the applicant provides information about themselves and their circumstances, which plays a crucial role in the underwriting process. These representations are significant because they help the insurer assess the risk involved and determine the appropriate coverage and premiums.

It's important to note that representations are not absolute guarantees; rather, they are statements that the applicant thinks are accurate. If the insurer later discovers that a representation was false or misleading, it can impact the validity of the insurance contract. This contrasts with legal guarantees regarding the insurance coverage, which are more binding and specific, and with statements that can never be contested by the insurer, which do not apply to representations as they can indeed be challenged if proven to be false. Complex clauses that define terms of the policy relate to the contractual language within the insurance document and are not representative of what is shared in the application process.