What is the consequence of providing a false representation in an insurance application?

Providing a false representation in an insurance application can lead to the contract being deemed null and void. This means that the contract has no legal effect as if it never existed in the first place. When an applicant misrepresents information—whether intentionally or unintentionally—the insurance company may consider this a breach of trust. Insurers rely on the accuracy of the information provided to assess risk correctly and set appropriate premiums.

If significant inaccuracies are discovered related to the underwriting process, the insurer has the right to void the contract based on the belief that had the truth been known, they would not have accepted the risk or written the policy at all. The principle of utmost good faith, or "uberrima fides," underlies this relationship, emphasizing that both parties must act transparently and honestly. It is important to understand that while there may be other consequences related to misrepresentations, the central legal implication is that the contract can be rendered null and void, eliminating any binding obligations or benefits.