You see it on most applications, in most policies, and on most claim forms, a statement regarding material misrepresentation, and that any material misrepresentation may be considered a fraudulent, if not criminal, act in certain states. However, what exactly is material misrepresentation? As is often the case with insurance, it can become a matter of degree.
Merriam Webster online defines material as having real importance or great consequences; something that is material is not just an overlooked detail, but a significant fact that can affect the outcome of a claims decision. Misrepresent is defined as to give a false or misleading representation, usually with an intent to deceive or be unfair. A misrepresentation is often a lie of commission or omission. An example of a lie of omission is failing to tell the insurer that you installed a swimming pool. An example of a lie of commission is saying that a sober passenger was driving when in fact the driver was the inebriated insured. Putting the two together, a material misrepresentation is a statement made by someone with an intent to deceive or mislead another party, with information that is significantly important to the issue at hand.
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