Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called what?

Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are referred to as representations. This term indicates a person's belief or opinion about facts that they affirm to be true when applying for insurance coverage. Representations are critical because they help insurers assess the risk associated with providing coverage. While applicants must provide truthful information, representations are not binding guarantees; rather, they allow for some discretion based on the applicant's knowledge at the time of the application.

Warranties differ significantly, as they are statements or promises that certain facts are true, and any breach of a warranty can lead to a claim being voided. Declarations typically refer to the formal statement of the insuring agreement, which includes the details of the insurance being provided. Affidavits are sworn statements made under oath, often used in legal contexts but not specifically applicable to insurance applications.

Understanding this distinction helps clarify how insurance companies interpret the information provided by applicants and the potential implications for claims and coverage validity.