Intentional material misrepresentations in insurance are called what?

Intentional material misrepresentations in insurance are called what?

• A. Misrepresentation
• B. Fraud
• C. Warranty
• D. Concealment

Answer: (B)

Fraud is the term for intentional material misrepresentation in insurance. It means knowingly giving false information or concealing facts that would influence underwriting or the amount paid on a claim. Because the deception is deliberate and material, the insurer can void the policy or deny coverage, and legal penalties may follow. This is distinct from misrepresentation, which can be accidental; concealment, which is withholding facts; and a warranty, which is a contractual promise about truth that affects coverage but isn’t defined by intentional deception.

Fraud is the term for intentional material misrepresentation in insurance. It means knowingly giving false information or concealing facts that would influence underwriting or the amount paid on a claim. Because the deception is deliberate and material, the insurer can void the policy or deny coverage, and legal penalties may follow. This is distinct from misrepresentation, which can be accidental; concealment, which is withholding facts; and a warranty, which is a contractual promise about truth that affects coverage but isn’t defined by intentional deception.