In insurance applications, what is the meaning of 'representations'?

In insurance applications, the term 'representations' refers to statements made by the applicant regarding their risk profile or the facts of the application. These statements are considered representations without warranties, meaning that they are assertions made in good faith that the applicant believes to be true at the time they are made. If it is later found that these representations were inaccurate or misleading, the insurer may have the right to adjust the terms of the insurance or deny coverage based on the misrepresentation.

This concept is crucial in understanding the nature of the insurance agreement, as it differentiates between what is merely stated by the applicant versus what is legally binding. Representations help insurers assess risk but do not guarantee coverage; this differentiates them from warranties—statements that, if untrue, can lead to a breach of contract.

Statements that guarantee coverage, written contracts defining the policy, or oral agreements modifying terms do not accurately describe representations in the context of insurance applications. Representations provide the foundation for the insurer's understanding of the applicant's situation without establishing a binding assurance like a warranty would.