When would misrepresentation on an insurance application be considered fraud?

• A. When it is intentional and material
• B. When it is accidental
• C. When it concerns non-material facts
• D. When it is admitted by the insured

Answer: (A)

Intentional deception about a material fact on the application is what makes misrepresentation count as fraud. The false statement must be purposeful (the insured knows it’s false) and matter to the risk the insurer is underwriting—something that would influence whether coverage is issued or at what cost. If the misrepresentation is accidental, or concerns something that wouldn’t affect risk (non-material), or is simply admitted without evidence of intent to deceive, it isn’t fraud. So the best answer is when the misrepresentation is both intentional and material, since that combination shows a deliberate attempt to mislead the insurer about a factor that would change the risk assessment.