Selling a policy by providing false information is known as what?

Misrepresentation refers to the act of providing false or misleading information regarding an insurance policy or coverage in order to persuade a client to purchase a policy or for other deceptive gains. This behavior undermines the trust essential for the insurance industry and can lead to serious consequences for both the agent and the client.

In the context of insurance, misrepresentation can occur in various forms, including exaggerating benefits, hiding exclusions, or providing information that is outright false. This can result in clients making uninformed decisions based on incorrect information, leading to financial losses or insufficient coverage when they need it.

While insurance fraud encompasses a broader range of activities, including intentional deception for financial gain, misrepresentation specifically focuses on the act of providing false information to influence decisions about purchasing a policy. Understanding this distinction is crucial for recognizing the various forms of unethical behavior in the insurance sector.