What is a Representation?

A representation refers to a statement made by the applicant for insurance that is intended to provide truthful information to the insurer based on the individual's knowledge. In the context of insurance, this statement plays a crucial role in the underwriting process, as insurers rely on these representations to assess risk and determine the terms of coverage. If a representation is found to be false or misleading, it can have significant implications, such as denying a claim or voiding the policy.

In contrast, an opinion provided by an insurance agent typically involves subjective views or interpretations, which differ from the factual assertions that constitute a representation. A formal contract between two parties outlines the terms and obligations of the involved parties but does not define the nature of representations. A legal objection to an insurance claim more accurately describes a dispute regarding validity or coverage disputes rather than the nature of representations made during the application process.