+1 (514)-814-3367Insurance and false information
What happens if You give false information to you insurance company when you fill the insurance applications?
First you have to know that there are tow type of insurance. Insurance of persons and damage insurance.
For damage insurance, the insurer can ask that the contract be declared void and refuse to pay the indemnity. The insurer must, however, prove that the insured hid the information out of bad faith. The insurer must also prove that if it had known this information, it would not have agreed to provide the insurance.
For insurance of persons, if the contract has been in effect for less than 2 years, the insurer can ask that the contract be declared void and refuse to pay the indemnity or the benefit. The insurer must, however, prove that the insured hid the information in bad faith.
If the contract of insurance has been in effect for at least 2 years, the insurer must prove that the insured committed fraud. Fraud implies an intention to deceive the insurer. But, in the case of disability insurance, the insurer can refuse to pay the indemnity without having to prove that the insured committed fraud; instead, the insurer just has to prove that the insured hid the information in bad faith.