In insurance applications, the statements made by the applicant are best described as

• A. Disclosures
• B. Declarations
• C. Warranties
• D. Representations

Answer: (D)

Statements on an insurance application are representations. They are the applicant’s statements of fact that are believed to be true at the time, used by the insurer to assess risk and determine eligibility and premium. They’re not warranties, which would be absolute promises that a fact is true; if a representation is false and material to the risk, the insurer can contest or even void the policy. Declarations refer to the basic identifying information and terms on the policy document, while disclosures are the information required or disclosed about the applicant. So the statements on the application are best described as representations.