A false statement made by an applicant that would influence an insurer in determining whether or not to accept the risk is

• A. An untruth
• B. A misstatement of age
• C. A material misrepresentation
• D. A non-disclosure

Answer: (C)

The main concept tested is material misrepresentation in insurance applications—the act of giving a false statement about a fact that would affect the insurer’s decision to accept the risk. Because the statement is both false and would influence underwriting, it fits the definition of a material misrepresentation. An untruth is too broad and not every false statement is material enough to change the underwriting decision. A misstatement of age is a specific example of a false statement, but the term material misrepresentation covers false statements that would impact the insurer’s assessment in general. Non-disclosure refers to withholding information (concealment) rather than making an affirmative false statement. So the best answer is material misrepresentation.