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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

103

:
LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS






Subchapter

002
:
LIFE INSURANCE AND ANNUITY CONTRACTS










 

§

3736. Representations in applications

All statements

and descriptions in any application for a life insurance policy or annuity

contract, by or in behalf of the insured or annuitant, shall be deemed to be

representations and not warranties. Misrepresentations, omissions, concealment

of facts, and incorrect statements shall not prevent a recovery under the

policy or contract unless either:

(1) Fraudulent;

or

(2) Material

either to the acceptance of the risk, or to the hazard assumed by the insurer;

or

(3) The insurer

in good faith would either not have issued the policy or contract, or would not

have issued it at the same premium rate, or would not have issued a policy or

contract in as large an amount, or would not have provided coverage with

respect to the hazard resulting in the loss, if the true facts had been made

known to the insurer as required either by the application for the policy or

contract or otherwise. (1967, No. 344 (Adj. Sess.), § 1 (ch. 2, subch. 2, §

18).)