What might result from an intentional misrepresentation by an applicant?

When an applicant intentionally misrepresents facts during the insurance application process, it can lead to significant consequences, most notably the nullification of the contract. Insurance contracts are based on the principle of utmost good faith, requiring both the insurer and the insured to act honestly and disclose all relevant information.

When an applicant provides false information intentionally—such as misrepresenting their health history or lifestyle choices—the insurance company may view this as fraud. As a result, the insurer has the right to void the policy, meaning they can cancel the contract entirely as if it never existed. This typically happens if the misrepresentation is discovered after a claim has been filed, resulting in the insurer denying the claim based on the grounds of the false information provided at the outset.

In contrast, options like immediate claim approval, increased premiums, and policy renewal are unlikely outcomes of intentional misrepresentation. These scenarios do not align with the serious consequences that arise from violating the trust placed in the applicant by the insurer.