A statement an applicant makes on an insurance application that is believed true to the best of their knowledge, rather than guaranteed to be literally true, is a:
Explanation
A representation is a statement the applicant believes to be true to the best of their knowledge; it need only be substantially true, and only a material misrepresentation gives grounds to void the policy. A warranty is a statement guaranteed to be literally and absolutely true. Concealment is the deliberate withholding of a known material fact. A waiver is the voluntary giving up of a known right. Application statements in life and health insurance are treated as representations, not warranties.
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Related questions on this topic
- An insurance policy is described as a 'unilateral' contract because:
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