Does an insurance company have a duty to verify an insured's statements made on an insurance application?

At the same time, an insurance company is entitled to rely on the insured's representations contained in an insurance application. The fact that an insurance company does not follow its own internal policy regarding verification of an insured's statements made on an application is not determinative. California statutes expressly permit an insurer to rely on an insured's representations. (See Ins. Code, 331; see also Robinson v. Occidental Life Ins. Co. (1955) 131 Cal.App.2d 581, 585 [insured has duty to

Page 8