Fraudulent Misrepresentation
Dishonest statement to induce an insurance company to write coverage on an applicant. If the company knew the truth, it would not accept the applicant. Fraudulent misrepresentation gives a property and casualty company grounds to terminate a policy at any time. A life insurance company, on the other hand, can terminate a policy on the grounds of fraudulent misrepresentation only during its first two years; after that, the incontestable clause takes effect.
Popular Insurance Terms
Property and casualty coverage that indemnifies automobile dealers if a dissatisfied customer demands a refund within the period of time allowed under the Uniform Commercial Code. This ...
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Record of insurance policies sold to an individual. ...
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