What types of statements can void a life insurance policy when made during the application process?

Material misrepresentations made during the application process can void a life insurance policy because they involve false statements that significantly affect an insurer's decision to underwrite the policy or the terms of coverage. When an applicant provides information that they know to be false or misleading regarding critical factors such as health history, lifestyle habits, or financial status, this can directly impact the insurer's risk assessment. If the insurer can demonstrate that they would have acted differently had they known the truth, the policy may be considered void from its inception.

In contrast, general statements made during the application process might not have significant implications on the underwriting decision and therefore do not usually lead to voiding a policy. Non-material statements, which do not affect the risk assessment or the insurer's willingness to provide coverage, also fail to justify voiding a policy. Faulty assumptions, while potentially misleading, do not constitute misrepresentations, as they are based on incorrect conclusions rather than intentional falsehoods. Thus, it is the presence of a material misrepresentation that establishes grounds for voiding a life insurance policy.