What are representations in the context of an insurance application?

In the context of an insurance application, representations refer specifically to statements made by the applicant. These statements are typically factual assertions that the applicant provides about themselves, their property, or their circumstances relevant to the insurance policy being sought. The purpose of these representations is to provide the insurer with a clear understanding of the applicant's risk profile, which helps the insurer determine the insurability and premium of the policy.

Since representations are foundational to the underwriting process, they must be truthful and complete; otherwise, they can affect both the issuance of the policy and any future claims. If it is later determined that the applicant made false representations, the insurer may have grounds to deny coverage or rescind the policy.

Legal agreements between parties describe the contract relationship but do not encompass the specific disclosures made during the application process. Claims made by the insurer pertain to actions the insurer takes after a policy is in force, rather than during the initial application. Terms that define the coverage involve the particulars of what the policy protects against but are separate from the representations made by the applicant during the application process.