Under which circumstance can an insurer deny a claim based on representations?

An insurer can deny a claim based on representations when those representations are proven to be false, material, and intentionally misleading. This is rooted in the principle of utmost good faith, which is fundamental in insurance contracts. When an applicant submits information that is both false and material, it means that this misinformation has a significant impact on the insurer’s decision to provide coverage or on the terms of that coverage.

Intentional falsehoods indicate that the applicant knowingly misrepresented the facts with the intent to deceive, which further invalidates the claim. In insurance, if the information provided is untrue and is of such importance that it could have led the insurer to refuse coverage or to set different terms had the truth been disclosed, then the insurer has the right to deny the claim.

The other circumstances provided in the options do not meet these criteria. For instance, representations that are proven false but not material would not be grounds for denial, as they do not significantly influence the insurer's decision-making process. Similarly, if representations appear misleading but aren't proven false or aren't material, that alone does not substantiate a denial. Finally, unsigned representations do not inherently affect their truthfulness or materiality; thus, they are insufficient grounds for denying a claim based on the characteristics discussed