What might result if an insurance applicant makes false statements in an insurance application?

The filled-in application form for insurance is usually attached to the policy and made a part of the insurance contract. Thus, an insurance applicant is bound by any false statements that appear in the application (subject to certain exceptions). Because the insurance company evaluates the risk factors based on the information included in the insurance application, misstatements or misrepresentations can void a policy, especially if the insurance company can show that it would not have extended insurance if it had known the true facts. Also, if an insurance company can show that a policy was obtained by fraud, it may have a valid defense for not paying on a claim.