Ace the 2026 Property and Casualty Challenge – Insure Your Success!

A representation is defined as a statement made by the applicant that they believe to be true. In the context of insurance, representations are important because they provide the insurer with information about the applicant's risk profile. These statements are not guarantees of truth but are made in good faith, and they must be accurate to the extent that they influence the insurer's decision to accept the application and determine the terms of coverage. If a representation turns out to be false and is material to the underwriting process, it may affect the validity of the insurance contract.

Warranties differ from representations in that warranties are promises that certain conditions will be fulfilled, and a breach of warranty can void a policy regardless of the materiality of the breach. Misrepresentation refers to incorrect statements or falsehoods made by the applicant, sometimes intentionally, which can lead to issues with policy validity. Disclosure involves providing information or facts to the insurer, typically concerning material risks, but it does not have the same connotation of belief as representation.