Under what conditions do misrepresentations not prevent recovery?

Misrepresentations in an insurance context refer to false statements made by the insured that can influence the insurer's decision to provide coverage. The principle guiding recoveries despite misrepresentations hinges on the concepts of fraud and materiality.

When misrepresentations are classified as non-fraudulent or if they are not material to the risk acceptance process, they may not prevent recovery of insurance benefits. A misrepresentation is considered material if it could sway the insurer's decision—either the decision to underwrite the policy or the terms upon which coverage is provided. If a misrepresentation is deemed non-material or is unintentionally made (lacking fraudulent intent), it typically does not bar recovery. This is rooted in protecting policyholders from being unduly penalized for honest mistakes or minor discrepancies that do not significantly impact the underlying risk.

The other options infer conditions that would not universally apply, such as the size of the error (which could lead to subjective interpretations), the timing of the misrepresentation (post-issuance errors could still affect a claim), or being unintentional alone (where the motivation behind the error is crucial). Thus, unless a misrepresentation is proven to be both fraudulent and material, the insured may still recover under the policy.