What term describes the intentional decision by a policy owner to provide false information regarding their age or health?

The term that describes the intentional decision by a policy owner to provide false information regarding their age or health is misrepresentation. Misrepresentation occurs when an individual provides inaccurate information or omits facts that are necessary for the insurance company to assess risk accurately.

In the context of insurance, this can significantly affect the underwriting process, potentially leading to an incorrect premium assessment or even the denial of claims. When a policyholder misrepresents their age or health, they are essentially altering the reality that the insurer relies upon, which can result in serious consequences, including policy cancellation.

Understanding misrepresentation is crucial because it highlights the importance of honesty in the insurance application process. This concept is distinct from negligence, which refers to the failure to exercise appropriate care, or fraud, which signifies a broader scheme of deception with the intent to gain something of value.