Under group policies, statements made by insured individuals are considered to be what?

In the context of group health insurance policies, statements made by insured individuals are classified as representations. This term refers to the information provided by an applicant during the application process that is intended to be truthful and accurate to the best of their knowledge. Representations are important because they help the insurer assess the risk associated with insuring a group and determine appropriate coverage terms.

Unlike warranties, which are guarantees that certain conditions will happen, representations do not carry the same strict legal weight and are based on what the applicant believes to be true at the time of the application. If a representation is later found to be false, it may affect the insurance coverage, but it does not void the policy outright like a breach of a warranty might.

Declarations typically serve as factual statements included in the policy itself, outlining the coverage and specifics of the insurance contract, whereas affidavits are sworn statements made under oath and are not commonly used in the context of group health insurance. Thus, representations accurately reflect the nature of the statements made by insured individuals under group policies.