What term describes false information provided on an insurance application?

The correct term for false information provided on an insurance application is misrepresentation. Misrepresentation involves providing incorrect or misleading information intentionally or unintentionally to an insurer. This can occur when an applicant fails to disclose important details or provides false details about their health, lifestyle, or other risk factors that could influence the insurer's decision on coverage or premium rates.

Understanding this term is important because misrepresentation can impact the validity of an insurance policy. If an insurer discovers misrepresentation, it may lead to the denial of claims or even cancellation of the policy.

The other terms, while related to the idea of incorrect information, do not capture the full legal and practical implications of misrepresentation. Misstatement may refer generally to incorrect statements made, but it lacks the specific context of insurance applications. Fraudulent information implies a deliberate intention to deceive for personal gain, which might not cover all cases of misrepresentation. Inaccurate disclosure suggests that information was not disclosed accurately, but it too lacks the nuance and specificity necessary to encompass the full definition of misrepresentation in an insurance context.