What are untrue statements made by an applicant that would have led the company not to issue a policy called?

In the context of insurance, untrue statements made by an applicant that would have influenced the insurer’s decision to issue a policy are referred to as material misrepresentation. This term specifically describes false information that is significant enough to affect the insurer's risk assessment and underwriting decision. If an applicant provides inaccurate details about their circumstances, such as prior claims history or existing conditions, and those details are relevant to determining coverage or premium rates, this constitutes material misrepresentation. Insurers rely on the truthfulness of the information provided during the application process to make informed decisions, and material misrepresentation can potentially lead to policy cancellation or denial of claims if discovered after issuance.

Promissory warranty refers to a guarantee made in a contract, which is not directly related to misrepresentations during the application process. Warranty implies a promise that certain conditions will be met in the future, whereas representation involves statements that are believed to be true at the time they are made but may be proven otherwise. Therefore, material misrepresentation is the most accurate term for describing the specific context of untruthful statements that affect the insurance policy issuance.