A mistake is made unconsciously.

There are many kinds of mistakes that can be made in the process of an applicant or insurer agreeing to an insurance arrangement. A mistake is different from misrepresentation.

Some mistakes are immaterial, e.g.,

  • misspelling of a name

Material mistakes would have prevented either party from agreeing to an insurance contract.

Mistakes can be

  • common mistake
    • both parties make the same mistake and end up with a contract neither wants
      • e.g., agree to life insurance on K, not realizing that K is a rock
  • mutual
    • each party has a different intention (e.g., insurer wants to insure A and applicant wants to insure B)
  • unilateral
    • made by one party
    • difficult for the other party to detect unless obvious

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