Section 12-207 - Statements in applications for life or health insurance or annuities. - Maryland Statutes

§ 12-207. Statements in applications for life or health insurance or annuities.
 

(a)  Considered to be representations.- Each statement by or on behalf of the insured or annuitant in an application for the issuance, renewal, or reinstatement of a life insurance or health insurance policy or annuity contract is considered to be a representation and not a warranty. 

(b)  Misrepresentations preventing recovery.- A misrepresentation, omission, concealment of facts, or incorrect statement does not prevent a recovery under the policy or contract unless: 

(1) the misrepresentation, omission, concealment, or statement is fraudulent or material to the acceptance of the risk or to the hazard that the insurer assumes; or 

(2) if the correct facts had been made known to the insurer, as required by the application for the policy or contract or otherwise, the insurer in good faith would not have: 

(i) issued, reinstated, or renewed the policy or contract; 

(ii) issued the policy or contract in as large an amount or at the same premium or rate; or 

(iii) provided coverage with respect to the hazard resulting in the loss. 
 

[An. Code 1957, art. 48A, § 374; 1995, ch. 36.]