What does "representation" in an insurance application imply?

In the context of an insurance application, "representation" refers to statements made by the applicant that they believe to be true at the time they make them. These representations are important because they provide the insurer with information upon which they base their underwriting decisions. If a representation turns out to be false, but it was made in good faith, it generally may not result in the voiding of an insurance policy unless the false statement is deemed material to the risk.

Representations differ from warranties, which are guaranteed to be true. As such, the correct understanding of representation hinges on the belief in the truth of the statements made rather than an absolute guarantee of accuracy or exaggeration. This distinction helps underscore the importance of honesty in the application process while also acknowledging that applicants are relied upon to provide accurate information based on their best knowledge.