What term describes a statement by the applicant that is believed to be true but not guaranteed?

The term that describes a statement made by the applicant that is believed to be true but not guaranteed is representation. In the context of insurance applications, a representation is a statement that the applicant provides, which is assumed to be true to the best of their knowledge at the time of application. These statements are relied upon by the insurer when making underwriting decisions, but since they are not guaranteed, inaccuracies in the representation generally do not void the contract unless they are material to the risk being evaluated.

Understanding the nature of representations is crucial in the insurance realm because they are foundational to the principle of utmost good faith, which requires honesty and transparency in all communications between the applicant and the insurer. This distinguishes representations from warranties, which are formal promises that certain conditions will be met, and from concealments, which involve the deliberate withholding of important information. An affidavit, on the other hand, is a written statement confirmed by oath or affirmation, but it serves a different purpose within legal contexts.