Insurance 101 – Chapter 8 – Volume 35 – 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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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.


One thought on “Insurance 101 – Chapter 8 – Volume 35 – Materiality”

  1. If a policy is cancelled due to inadvertent non disclosure of doctors visits due to lower back pain, not diagnised as a condition, and this is then used to refuse a claim for glaucoma. The policy was only “validated” once the claim was lodged.

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