Representations (definition) refer to statements that are what?

• A. Statements believed to be true to the best of one's knowledge
• B. Answers the insured gives to the questions on the insurance application
• C. Warranties that bind the policy
• D. Statements made under oath

Answer: (A)

Representations are statements the applicant believes to be true to the best of their knowledge at the time the policy is applied for. They’re not guarantees and aren’t sworn under oath; they reflect the applicant’s belief about facts that affect the risk. If a material representation is later found to be false, the insurer may have grounds to deny or cancel coverage, but the statements themselves are about belief, not a guaranteed promise. This differs from warranties, which are statements guaranteed to be true for the contract to stay in force, and from simply answering questions on the application, which are the sources of representations but not the defining concept.