Insurance 101 – Chapter 8 – Volume 35 – Materiality

Materiality

The materiality of a misrepresentation is determined by its probable and reasonable effect upon the insurer. When deciding to rescind or not rescind an insurer should consider, according to the Court of Appeal the test for materiality is whether the information would have caused the underwriter to reject the application, charge a higher premium, or amend the policy terms, had the underwriter known the true facts.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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