In insurance terminology, what is a representation?

In insurance terminology, a representation refers to statements made by the insured that are believed to be true to the best of their knowledge when applying for insurance coverage. These statements can include information about the applicant’s health, property condition, or any other relevant details that influence the insurer's decision to issue a policy or set premiums.

The importance of representation lies in its role in the underwriting process. If an insured provides false information or omits critical details, it may affect the validity of the contract or the insurer's response to a claim. Unlike warranties, which are guarantees that certain facts or conditions will hold true throughout the life of the policy, representations are statements made at a specific point in time that express the insured's honest belief.

Understanding representations helps both insurers and insured parties navigate the expectations and obligations inherent in an insurance contract.