What are representations in the context of insurance?

In the context of insurance, representations are statements that the applicant believes to be true based on their knowledge and understanding at the time of making the statement. These representations are critical during the underwriting process because they help insurers assess the risk associated with providing coverage. When an individual applies for insurance, they provide information about their health, lifestyle, and other relevant factors. These statements are not guaranteed to be true in an absolute sense but are expected to reflect the applicant's honest belief and understanding.

This distinction is significant because if a representation turns out to be untrue, it may not necessarily void the insurance contract unless the untruth was intentional or fraudulent. Insurers generally rely on the information provided by applicants to make informed decisions about offering coverage and determining premiums. Consequently, the emphasis on these representations being based on the applicant's knowledge underscores the importance of truthful disclosure rather than absolute guarantees.