In underwriting, presenting a false statement that would influence underwriting is known as what?

In underwriting, presenting a false statement that would influence underwriting is known as what?

• A. A minor error
• B. A concealment
• C. A material misrepresentation
• D. A waiver

Answer: (C)

Material misrepresentation is when someone provides a false statement that would influence the underwriting decision. Underwriting depends on accurate facts about risk—things like health, smoking status, past claims, and other factors that determine eligibility, premium, and terms. If a statement is false and that falsity would have changed how the risk is assessed, the misrepresentation is considered material. This is different from a minor error, which wouldn’t affect risk, and from concealment, which is the withholding of a known fact and can also lead to denial if the omitted information is material. A waiver, meanwhile, is simply relinquishing a right and isn’t about misrepresentation.

Material misrepresentation is when someone provides a false statement that would influence the underwriting decision. Underwriting depends on accurate facts about risk—things like health, smoking status, past claims, and other factors that determine eligibility, premium, and terms. If a statement is false and that falsity would have changed how the risk is assessed, the misrepresentation is considered material. This is different from a minor error, which wouldn’t affect risk, and from concealment, which is the withholding of a known fact and can also lead to denial if the omitted information is material. A waiver, meanwhile, is simply relinquishing a right and isn’t about misrepresentation.