What is a potential result of misrepresentation in an insurance application?

Misrepresentation in an insurance application can lead to serious consequences, particularly the potential denial of the policy application. When an applicant provides false or misleading information, it can undermine the insurer's ability to assess the risk accurately. Insurers rely heavily on the information provided during the application process to make informed decisions about coverage and pricing.

If misrepresentation is identified, the insurer may determine that they would not have issued the policy had they known the true facts. This could result in the denial of the entire application or even the cancellation of an existing policy if the misrepresentation was significant enough to affect risk assessment. Thus, the integrity of the information provided is crucial for the underwriting process, and misrepresentation can have substantial legal and financial implications for both the insurer and the insured.