What constitutes misrepresentation in the insurance context?

Misrepresentation in the insurance context refers to providing incorrect or misleading information regarding the terms, conditions, or benefits of an insurance policy. When a party makes an untrue representation, it creates an inaccurate perception of the policy that could influence the other party’s decisions. This can lead to issues such as claims denials or cancellation of the insurance contract, impacting both the insurer and the insured.

In the context of the other options, a thorough disclosure of facts would actually be the opposite of misrepresentation, as it involves providing complete and accurate information. A statement made by a licensed agent could be considered misrepresentation if it is untrue, illustrating that merely being licensed does not exempt one from responsibility for providing accurate information. Similarly, a suggestion that is true but misleading does not directly define misrepresentation; it indicates a nuance but lacks the clear definitiveness of an outright untrue representation. Therefore, the essence of misrepresentation is rooted in the act of stating something that is not true.