What is the definition of Void?
Void refers to the status of the policy contract when it is nullified for some reason.
The insurance company may cancel the policy due to the policy owner's misstatement or misrepresentation of facts, facts that would have had an effect on the policy and its issuance, had the insurance company known about it. And since the policy is void, the insurance company may also deny all claims related to it.
For instance, if an insurance company who issued an auto insurance policy may deny a claim when it finds that the insured is driving without a license or driving a car that does not belong to the proper insurance band.
The insurance company may also void a policy if it finds out that the insured person hid the fact that he has a preexisting condition, a sickness that may cause the policy to be rated.
The insurance company has a contestability period - it is allowed to void a policy within that period.
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