Which situation constitutes an example of misrepresentation when applying for insurance?

Exaggerating safety features of the property is a clear case of misrepresentation when applying for insurance. Misrepresentation occurs when an applicant provides false or misleading information that could influence the underwriter’s decision to provide coverage or determine the premium rates. By exaggerating the safety features, the applicant is distorting the truth to portray the property as a lower risk than it actually is. This deception can lead the insurer to offer a policy that it otherwise may not have provided, based on a proper assessment of risk.

While each of the other scenarios involves some form of miscommunication or incomplete information, exaggerating safety features is a direct attempt to mislead insurers about the true nature of the risk, which is a key factor in evaluating insurance applications. Such an act can ultimately negate the validity of the insurance contract if discovered.