Question

The misrepresentation of any fact about the insurance policy (terms, benefits, value, costs, effective date, existence of contract) results in what?

1) Cancellation of the policy
2) Termination of the policy
3) Invalidity of the policy
4) None of the above

Answer 1

Misrepresentation of any fact about an insurance policy can result in the invalidity of the policy.

Step-by-step explanation:

Misrepresentation of any fact about an insurance policy, such as its terms, benefits, value, costs, effective date, or existence of a contract, can result in the invalidity of the policy. It means that the policy would be considered null and void, and the insured party would not be entitled to any benefits or coverage under that policy. In other words, the insurance company would not be obligated to honor the policy and provide compensation for any claims.