Representation in insurance refers to the statements made by the applicant for insurance coverage, which are considered true to the best of the applicant's knowledge when the policy is issued.
The assertion that representation may be altered after the insurance is effected is not true, as representations are typically considered to be accurate as of the time the policy is issued. Once a policy takes effect, the representations at the time of application cannot be changed by either party. They form the basis of the insurer's decision to issue the policy.
Furthermore, oral representations and written statements both play a role in the representation process, and representation can certainly be seen as part of the overall intent and understanding captured within an insurance contract. Unlike express provisions, which are clearly listed in a policy, representations provide context and background information that contribute to the risk assessment by the insurer. Lastly, representation is interpreted similarly to contracts in a general sense—where intention, clarity, and mutual agreement are key.
Thus, the focus on the nature of representation and its stability after the issuance of a policy highlights why the statement about it being alterable is the incorrect assertion.