Which scenario best illustrates misrepresentation in insurance?

Providing incorrect, misleading, incomplete, or materially untrue information in the license application best illustrates misrepresentation in insurance because misrepresentation occurs when someone presents false information that can influence the decision of an insurer. This can pertain to the applicant's health history, lifestyle, occupation, or any factual aspect relevant to the insurance policy.

When applicants provide false or misleading information, it can impact the insurer’s ability to assess risk accurately and determine premium rates or eligibility for coverage. Misrepresentation can be either intentional or unintentional; however, it typically violates the principle of good faith that underlies insurance contracts.

In contrast to the other scenarios, failing to notify the insurer of a change in address may not directly involve presenting false information but rather involves a failure to communicate changes that still are not misleading in the context of the information provided. Omitting minor health issues could potentially be seen as misrepresentation depending on the materiality of the omitted information, but it is less definitive than outright providing misleading information. Filing a claim after the policy lapses does not typically fall under misrepresentation but rather the concept of policy compliance, as the policy is no longer effective.