Texas Property and Casualty License Practice Exam 2026 - Free Practice Questions and Study Guide

Misrepresentation in the insurance context refers specifically to information that is not true. This incorrect information can influence the insurer's decision-making process, leading them to underwrite the policy under false pretenses. If a policyholder provides inaccurate details, whether intentionally or unintentionally, it can affect the risk assessment and the terms of coverage.

While intent to mislead is an important consideration, it is not a requirement for a statement to be considered misrepresentation; the focus is primarily on the truthfulness of the information itself. Additionally, information that is true but unverifiable does not qualify as misrepresentation since the truthfulness of the statement is not in question. In contrast, information backed by evidence is typically aligned with accurate and truthful representation, mitigating issues of misrepresentation.