In his article Insurers: To Rescind Or Not to Rescind?, insurance agency expert witness Akos Swierkiewicz writes:
Misrepresentation or concealment is material if it affects the underwriting decision of the insurer. For example, the premium would have been higher had the insurer been aware of the true and complete facts.
Property-casualty policies typically include conditions pertaining to the subject of rescission, such as:
• The policy is issued in reliance upon the truth of representations made by the insured.
• The policy is void if the insured intentionally conceals or misrepresents a material fact.
• The insured, by accepting the policy, agrees that the statements in the policy declarations are accurate and complete.