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discovered it, your representation would have been false. However, it would have no bearing on the life insurance contract if the insurer cannot prove that you were aware of the condition before the date on the application. Fraudulent misrepresentation is deliberate. Life insurance does not carry a continuing duty of disclosure either. If you discover new information after the application date but before the issue date, you are not required to disclose this to the insurer in most cases.

Companies share underwriting information on applicants through a shared database maintained by the Medical Information Bureau. Applicants are also required to sign a waiver of confidentiality clause on the application. This gives an insurer the right of access to your medical history if an investigation is required to prove misrepresentation. Even if the insured dies and a claim is made, the insurer can investigate the cause of death within the contestability period. More importantly, the insurer would have access to autopsy information and all medical records prior to the application date.

Utmost good faith is paramount on a life insurance application. There may be times when one is faced with questions that one may not be able to answer. This would occur particularly where the cause of death of an immediate family member is required. Instead of speculating or giving a safe response, the best bet would be to declare that you are unsure. This may raise a flag where the underwriter is concerned but it is better than making a misrepresentation, even if innocently, on a material fact.

Learn more about this author, Darrell Victor.
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