Untrue statements on the application unintentionally made by insureds that would alter the underwriting decision, if discovered, are called?

The correct term for untrue statements made unintentionally by insureds that could influence the underwriting decision is "material misrepresentations." In the context of insurance applications, a material misrepresentation refers to a false statement that is significant enough to affect the insurer's evaluation of the risk. If the insurer were aware of the correct information, it might change the terms of the coverage or even deny the application altogether.

Material misrepresentations differ from fraudulent statements, which involve intentional deceit, as well as warranties, which are promises that certain conditions will be met. Common errors typically refer to minor or insignificant mistakes that do not affect the underwriting process. Understanding this concept is crucial for both insurers and insureds, as accurate representation on insurance applications is essential for fair underwriting practices and maintaining the integrity of insurance contracts.