A statement in an application that is untrue but does not become part of the policy is known as ...

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Prepare for the Florida Claims Adjuster (6-20) Test. Use flashcards and multiple choice questions, with hints and explanations for each question. Ace your exam!

Multiple Choice

A statement in an application that is untrue but does not become part of the policy is known as ...

Explanation:
A misrepresentation is a false statement made by the applicant in the application. Even if that statement isn’t part of the policy wording, it can still be material to the underwriting decision, so the insurer may use it to refuse coverage, cancel, or adjust terms. This differentiates it from concealment, which is intentionally withholding a material fact, and from a warranty, which is a promise about a condition that becomes part of the policy. Abandonment is unrelated to misstatements in the application.

A misrepresentation is a false statement made by the applicant in the application. Even if that statement isn’t part of the policy wording, it can still be material to the underwriting decision, so the insurer may use it to refuse coverage, cancel, or adjust terms. This differentiates it from concealment, which is intentionally withholding a material fact, and from a warranty, which is a promise about a condition that becomes part of the policy. Abandonment is unrelated to misstatements in the application.

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