§ 12-207. Statements in applications for life or health insurance or annuities

   (a) Considered to be representations. -- Each statement by or on behalf of the insured or annuitant in an application for the issuance, renewal, or reinstatement of a life insurance or health insurance policy or annuity contract is considered to be a representation and not a warranty.

(b) Misrepresentations preventing recovery. -- A misrepresentation, omission, concealment of facts, or incorrect statement does not prevent a recovery under the policy or contract unless:

   (1) the misrepresentation, omission, concealment, or statement is fraudulent or material to the acceptance of the risk or to the hazard that the insurer assumes; or

   (2) if the correct facts had been made known to the insurer, as required by the application for the policy or contract or otherwise, the insurer in good faith would not have:

      (i) issued, reinstated, or renewed the policy or contract;

      (ii) issued the policy or contract in as large an amount or at the same premium or rate; or

      (iii) provided coverage with respect to the hazard resulting in the loss.

HISTORY: An. Code 1957, art. 48A, § 374; 1995, ch. 36.