material misrepresentation

A material misrepresentation in an insurance context is a false, misleading, or omitted statement in an insurance policy application or renewal that is significant enough to affect an insurer's decision to issue a policy, set premium, determine coverage terms, or accept a risk. It occurs when an applicant provides inaccurate information or fails to disclose important facts that would influence the underwriting of the risk. Depending on the applicable law, policy language, and circumstances, it is possible for insurers to deny a claim, rescind the policy, adjust terms, or take other action due to a material misrepresentation.