Which term best describes misstatement or omission of facts that is intentional and relied upon?

• A. Prohibited false/misleading advertising
• B. Conspiracy
• C. Misrepresentation
• D. Revocation

Answer: (C)

Misrepresentation is about knowingly giving false information or omitting a material fact, and the other party relies on that information when deciding to issue or price a policy. The key elements here are intent to deceive and reliance by the other party, which is exactly what the description calls for.

Other terms don’t fit as well: deceptive advertising refers to false marketing rather than statements made in a specific insurance transaction; conspiracy involves colluding with others to commit fraud; revocation is the act of canceling a license or contract, not the act of misstatement itself.