Material misrepresentation, in the context of insurance, is a false statement the applicant makes when applying for a policy. Misrepresentation is only considered "material" if it would affect the insurer's decision to accept or reject the application. Moreover, it constitutes a breach of contract and renders the insurance policy null and void from the beginning.
There is material misrepresentation when an applicant makes false statements or conceals facts with the intention of inducing the insurer to issue an insurance policy. In many instances, even if it was unintentional, the insurer has the right to void the contract. They may refund any paid premiums or altogether seize them if it comes to light that the policyholder made a material misrepresentation with the intent to defraud the insurer. However, minor cases may simply result in the insurer updating the contract terms, including the premium, to account for the new information.
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