What constitutes misrepresentation under Texas insurance law?

What constitutes misrepresentation under Texas insurance law?

• A. Making false or misleading statements about policy terms, coverage, premiums, or conditions to influence decisions.
• B. Making true statements about policy terms and coverage.
• C. Failing to disclose all personal information to the insurer.
• D. Providing generic information not related to the policy.

Answer: (B)

Misrepresentation is making false or misleading statements about facts that matter to the insurer’s decision to issue, rate, or underwrite a policy. In Texas, such statements must be material to the risk or to the terms of coverage. If someone says a policy covers something it doesn’t, or inflates or misstates premiums or conditions to influence the insurer’s decision, that is misrepresentation. True statements are not misrepresentation, and simply failing to disclose information is a separate issue called concealment, not misrepresentation.

Misrepresentation is making false or misleading statements about facts that matter to the insurer’s decision to issue, rate, or underwrite a policy. In Texas, such statements must be material to the risk or to the terms of coverage. If someone says a policy covers something it doesn’t, or inflates or misstates premiums or conditions to influence the insurer’s decision, that is misrepresentation. True statements are not misrepresentation, and simply failing to disclose information is a separate issue called concealment, not misrepresentation.