Two applicants each give the wrong roof age. One is guessing honestly and the other is hiding a claim history. Fraud is distinguished by:
Explanation
Fraud requires deliberate deception aimed at an unfair gain, and it can void the policy and expose the person to criminal charges. An innocent misrepresentation of a material fact may still let the insurer rescind the contract, but there is no fraud because the applicant believed the answer was right. Whether the answer was written or spoken, and how big the loss turned out to be, do not create the intent.
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