Fraudulent misrepresentation refers to a dishonest statement made by an applicant to induce an insurance company to issue coverage. If the company knew the truth, it would not accept the applicant. This gives a property and casualty insurance company grounds to terminate a policy at any time.
Incendiarism refers to the act of deliberately setting fire to property, an act commonly known as arson. Arson is typically a covered peril under property insurance contracts, provided the property owner is not responsible for the arson.
