What is the term used for the misstatement of facts in an insurance contract?

The term "misrepresentation" refers to the incorrect or misleading presentation of facts within an insurance contract. When a policyholder provides false information or omits relevant details, whether intentionally or unintentionally, it constitutes a misrepresentation. This can lead to significant consequences for both the insurer and the insured, such as the denial of claims or cancellation of the policy. Misrepresentation undermines the foundation of trust and accuracy that is essential for the functioning of insurance agreements.

In contrast, the other choices describe different concepts. Knocking does not have relevance in insurance terminology; it may refer to physical damage. Overloading typically pertains to exceeding weight limits, not applicable in this context. Twisting involves persuading a policyholder to switch policies based on misleading information, but it is distinct from the act of misrepresentation itself. Understanding these distinctions helps clarify the nature and implications of misrepresentation in insurance contracts.