Does an Innocent Misrepresentation in an Application for General Insurance

question 36

Multiple Choice

Does an innocent misrepresentation in an application for general insurance entitle the insurer to refuse to pay a claim?

• A)No,but they can reduce their liability to nil if they can show that would not have entered into the contract if the misrepresentation had not been made.
• B)Yes,the insurer can refuse,but only if the insurer is in a different position than they would have been had the misrepresentation not been made.
• C)Yes,the insurer is entitled to avoid the contract entirely.
• D)No,the insurer cannot refuse to pay the claim.

---

Definitions:

Innocent Person

An individual who has not committed the crime or offense they are accused of.

Criminal Trial

A legal proceeding in which a person accused of committing a crime is tried in a court, judged, and then sentenced if found guilty.

Error Probability

The likelihood of making an incorrect decision or inference in a statistical test.

Type I Error

The mistake of rejecting a true null hypothesis, also known as a "false positive" in hypothesis testing.