Intentional material misrepresentations in insurance are called what?

• A. Misrepresentation
• B. Fraud
• C. Warranty
• D. Concealment

Answer: (B)

Fraud is the term for intentional material misrepresentation in insurance. It means knowingly giving false information or concealing facts that would influence underwriting or the amount paid on a claim. Because the deception is deliberate and material, the insurer can void the policy or deny coverage, and legal penalties may follow. This is distinct from misrepresentation, which can be accidental; concealment, which is withholding facts; and a warranty, which is a contractual promise about truth that affects coverage but isn’t defined by intentional deception.