YOU ASK:

What is the definition of Misrepresentation?

WE ANSWER:

Misrepresentation refers to the act of giving a misleading or false statement.

With respect to insurance, this means that the statement provided caused the insurance company to issue the policy that it would not have issued had it known all the facts.

During the contestable period, the insurance company has the right to cancel the policy or deny the claims once the misrepresentation is uncovered. However, when the contestable period has passed, the insurance company is obligated to continue providing the coverage as stated in the policy and to honor all valid claims. However, for misrepresentation for age or sex, the death benefits or other benefits payments will be adjusted and premiums will be added or deducted to reflect the right age or sex.

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