Void

What Does Void Mean?

When an insurance policy is void, it becomes invalid and legally unenforceable. As a result, all its provisions, including the benefits the policyholder would have received, are canceled. This typically occurs when the insurance company discovers that the policyholder provided false information or misrepresented details critical to accurate premium evaluation.

Insuranceopedia Explains Void

Disclosure is a top priority in the insurance industry. The information provided to the insurer is essential for determining the appropriate policy pricing and premium. In other words, the insurer requires accurate and truthful details to offer the most suitable policy.

However, if a policyholder withholds critical information, they risk having their policy voided. For example, a smoker applying for health insurance must disclose their smoking habit. If they fail to do so—perhaps to avoid higher premiums—they may lose coverage if the insurer voids the policy after investigating a claim.