What are representations in the context of an insurance application?

In the context of an insurance application, representations refer to the written or oral statements made by the applicant regarding facts and circumstances related to their insurance needs. These statements provide the insurer with critical information that helps assess the risk associated with providing coverage. The accuracy and honesty of these representations are paramount, as they can significantly influence the underwriting process and the final decision on coverage. If the applicant misrepresents information, it can lead to denial of coverage or cancellation of the policy later on.

Other options discuss important aspects of an insurance contract but do not capture the essence of representations. For instance, estimates of coverage amounts relate more to the valuation process and not to the statements made by the applicant. Claims made by the insured occur after a policy is in effect and involve seeking compensation for losses. Definitions of policy terms pertain to explaining the specific language used in an insurance contract rather than the applicant's disclosures.