Question

untrue statements on the application unintentionally made by insureds that, if discovered, would alter the underwriting decision of the insurance company, are called
a. fraudulent statements.
b. material misrepresentations.
c. common errors.
d. warranties.

Explanation:

• Fraudulent statements are intentional false statements, not unintentional ones.
• Material misrepresentations are unintentional untrue statements on an insurance application that would change an insurer's underwriting decision, matching the definition provided.
• Common errors are minor, inconsequential mistakes that do not impact underwriting decisions.
• Warranties are explicit promises made by the insured, not unintentional false statements.

Answer:

B. Material misrepresentations.