What does "material" refer to in the context of insurance information?

In the context of insurance information, "material" specifically refers to false information that would change the insurer's decision. This is vital because material information can significantly impact underwriting decisions and the terms of coverage. When an applicant provides false information or omits relevant facts, it could lead to a different assessment of risk by the insurer. Such misinformation could either cause a policy to be priced differently or lead to a denial of coverage altogether if the insurer determines that it would have affected their willingness to underwrite the policy if they had known the true facts. This principle ensures that both the insurer and the insured operate on a basis of trust and transparency.

While other choices mention various types of information, they do not capture the essence of what "material" means in the insurance context. Non-essential information does not typically influence decision-making; factual statements made might encompass both material and immaterial facts; and information that has no impact on coverage clearly does not fall under material information as it lacks relevance to the insurer's risk assessment process.