Insurance Policies Generally

ORS 742.013
Representations in applications


All statements and descriptions in any application for an insurance policy by or in behalf of the insured, shall be deemed to be representations and not warranties. Misrepresentations, omissions, concealments of facts and incorrect statements shall not prevent a recovery under the policy unless the misrepresentations, omissions, concealments of fact and incorrect statements:


Are contained in a written application for the insurance policy, and a copy of the application is indorsed upon or attached to the insurance policy when issued;


Are shown by the insurer to be material, and the insurer also shows reliance thereon; and


Are either:


Fraudulent; or


Material either to the acceptance of the risk or to the hazard assumed by the insurer.


This section does not apply to surety insurance. [Formerly 743.042]

(formerly 743.042)

See also annotations under ORS 743.042 in permanent edition.

Notes of Decisions

Not reliance alone, but reliance where there is right to rely will relieve party from another's fraud under this section. Kubeck v. Consol. Underwriters, 267 Or 548, 517 P2d 1039 (1974)

Incorrect answers on the insurance application were not material as matter of law. Santilli v. State Farm Life Ins. Co., 278 Or 53, 562 P2d 965 (1977)

Insurer has no duty to investigate representations of policy application where application is incomplete on its face unless omissions are so obviously material that reliance on incomplete application would be reckless. Kraus v. Prudential Ins. Co. of America, 799 F2d 502 (1986)

Where affidavit of Pacific Hospital Association's (PHA) executive vice president states that omitted condition from health insurance application was material to acceptance of risk, PHA relied on accuracy of plaintiff's information in issuing earlier policy and court did not err in granting summary judgment. Martin v. Pacific Hospital Assoc., 101 Or App 37, 788 P2d 1029 (1990)

Where typewritten version did not vary materially from original and statutes do not require "copy" be signed and insured signed Part II of typewritten version, thereby affirming all parts, unsigned typewritten attachment to policy was "copy" of original signed, handwritten application. Ives v. INA Life Ins. Co., 101 Or App 429, 790 P2d 1206 (1990), Sup Ct review denied

To establish reliance on representations, insurer must show reliance in fact; reliance that was justified in light of facts known to insurer at time; and insurer's right to rely on representations. Story v. Safeco Life Insurance Co., 179 Or App 688, 40 P3d 1112 (2002)

Where insurer makes prima facie showing of reasonable reliance on insured's representation, insured has burden to show insurer knew facts that revealed falsity of representation or should have led insurer to learn falsity of representation. Story v. Safeco Life Insurance Co., 179 Or App 688, 40 P3d 1112 (2002)

For copy of application to be "indorsed upon" policy, material information from application must be inscribed or otherwise reproduced on policy itself. Brock v. State Farm Mutual Automobile Insurance Co., 195 Or App 519, 98 P3d 759 (2004)

To deny coverage based on misrepresentation in application, indorsement upon, or attachment to, insurance policy must be sufficient to fully and precisely apprise applicant of information being relied upon by insurer in issuing policy. Brock v. State Farm Mutual Automobile Insurance Co., 195 Or App 519, 98 P3d 759 (2004)


Last accessed
Jun. 26, 2021