What is defined as a statement that would lead to a different underwriting decision if known?

The correct choice is material misrepresentation, which refers to an inaccurate statement or omission made by an applicant that is significant enough that it could change the underwriting decision of an insurer. Underwriting decisions are based on the information provided by the applicant; therefore, if a crucial fact is misrepresented—whether intentionally or unintentionally—it may affect the risk assessment that underwriters make when deciding whether to issue a policy and under what terms.

In the context of insurance, a material misrepresentation occurs when the insurer relies on the incorrect information to evaluate the applicant’s risk. For example, if an applicant fails to disclose a history of claims or is dishonest about their driving record, this may significantly alter the insurability or premium rates offered.

The other options, while related concepts, do not specifically capture the essence of a statement that could influence underwriting decisions in the same way. A concealment typically refers to the intentional withholding of information rather than providing false information. A representation involves a statement made by the applicant that is believed to be true at the time but does not necessarily imply any misrepresentation. A warranty is a specific promise made in an insurance policy that particular conditions will be fulfilled or maintained, and its breach can lead to a claim being voided but doesn't directly