Which of the following is an example of a condition that may void an insurance contract?

Misrepresentation of material facts can void an insurance contract because it undermines the foundational principle of utmost good faith that governs insurance agreements. If an insured party provides false information or conceals relevant facts during the application process, this can alter the insurer's assessment of risk and their decision to issue coverage. If the misrepresentation is deemed material—meaning it would have influenced the insurer's decision regarding underwriting or pricing—the insurance company has the right to void the contract.

This principle protects insurance companies from the adverse selection of insuring individuals who may present a higher risk than disclosed. It ensures that both parties enter the contract with complete transparency and honesty, which is essential for an equitable insurance relationship. When material facts are misrepresented, it can often lead to the insurance company being unable to fulfill its contractual obligations based on the accurate understanding of the risk involved.

While non-payment of premium, failure to renew, and late filing of a claim are serious issues that can affect coverage, they do not inherently void the contract in the same manner as misrepresentation. Non-payment may lead to cancellation of the policy, and failure to renew may simply end the coverage at the term's conclusion, while late filing of a claim may impact the claim's eligibility but does not typically void the