How are all statements made on an insurance application classified?

Statements made on an insurance application are classified as representations. This classification is important because representations are the statements and responses that an applicant provides during the application process. They characterize the applicant's understanding of their health, lifestyle, and personal information to the best of their knowledge and belief at the time of application.

Representations are typically considered to be truthful and accurate but may not be held to the same strict standard as warranties, which are exact and unequivocal statements that must be strictly adhered to. If a representation is proven to be false, it might affect the insurer's decision but does not automatically void the policy or claim unless the false information is material and significantly impacts the underwriting decision. Understanding this distinction helps in grasping how insurers evaluate risk and the validity of claims based on the information provided by applicants.