Applied for life insurance

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Reference no: EM131010046

Bill Boggs just applied for life insurance. During the application process, he indicated that he had never had pneumonia, when the truth is that he did have the disease as a baby. He did fully recover, however, and there were no permanent ill effects. Bill was unaware of having had pneumonia as a baby until a few weeks after he completed the application when his mother told him of the event.

Will this misstatement on the life insurance application be grounds for the insurer to cancel his life insurance after it is issued?

Why or why not? If he discovers his error, should he notify the insurer? Will his statements be treated as warranties, or as representations?

Reference no: EM131010046

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