A statement made in an insurance application believed to be true but not guaranteed qualifies as what?

A statement made in an insurance application that is believed to be true but not guaranteed is classified as a representation. In the context of insurance, a representation refers to an assertion or statement made by the applicant, which they believe to be accurate based on their knowledge at the time of the application. This differs from a warranty, which is a guarantee that certain conditions are true or will happen; warranties carry a stronger legal obligation.

Misrepresentation involves stating something that is false or misleading, which can have serious consequences if the insurer relies on that incorrect information. Concealment refers to the intentional withholding of information that should have been disclosed to the insurer. Hence, the nature of a representation lies in the applicant's belief in its truthfulness rather than an absolute guarantee, reflecting a standard of truthfulness expected during the application process while still allowing for some human fallibility.