Representation

What Does Representation Mean?

Representation refers to the act of providing important information, either in writing or orally, that enables the recipient to make informed decisions. In insurance, such information is essential for the insurer to accurately draft the policy. Failure to disclose significant details can result in the nullification of the insurance contract.

Insuranceopedia Explains Representation

When a person applies for insurance, they provide the insurance company’s representative with facts about themselves or the property they wish to insure, which influence the policy’s price and coverage.

For example, an individual with diabetes must disclose this health condition, allowing the insurer to assess the associated risks and determine an appropriate policy. Similarly, a person insuring their car must share relevant details, such as a history of arrests for drunken driving or if the vehicle is occasionally used for racing.

If such critical information is not disclosed, the insurance company may later deny coverage. Failing to accurately represent these facts can nullify or void the policy.