What does it mean if a misrepresentation is considered fraudulent?

A misrepresentation is deemed fraudulent when it is made with the intent to deceive. In the context of insurance and adjustments, this means that the individual knowingly provides false information or omits critical facts, intending that the recipient, such as an insurance company or another party, will rely on this misinformation.

Fraudulent misrepresentation has significant implications in the insurance field, as it can result in legal actions, penalties, and the loss of coverage or claims. The intent to deceive distinguishes these types of misrepresentations from innocent errors or misunderstandings, which do not carry the same serious consequences. Understanding this distinction is crucial for adjusters and those working within the insurance industry, as it underscores the importance of honesty and integrity in handling claims and disclosures.