False Term Life Insurance Information
Falsifying information on a term life insurance contract can be considered fraud. Not only will your life insurance be rescinded by the company, but you can be criminally prosecuted by the insurer.
Other People Are Reading
-
Types
-
Generally, you can make two types of misstatements on a life insurance application. A misstatement can be material or non-material.
Function
-
A misstatement of a material fact is one that would affect whether an insurance company would insure you or not and what your premium would be. A non-material fact is generally not considered fraud and is typically an accidental misspelling of a name, word or some other piece of information that does not affect eligibility for insurance.
-
Significance
-
If you are caught lying on a life insurance application, your policy will likely be revoked. However, the insurance company can press criminal charges. If the insurer finds out that you've lied after you die, the insurance company can still rescind the insurance policy and can prosecute the beneficiary in some States.
-
