Code of Alabama
Ala. Code § 27-14-7 (2026)
Application for Policy - Representations and Misrepresentations, Etc.
✓ official Alabama Legislature (ALISON) text, current July 2026
(a) All statements and descriptions in any application for an insurance policy or annuity contract, or in negotiations therefor, by, or in behalf of, the insured or annuitant shall be deemed to be representations and not warranties. Misrepresentations, omissions, concealment of facts and incorrect statements shall not prevent a recovery under the policy or contract unless either:
(1) Fraudulent;
(2) Material either to the acceptance of the risk or to the hazard assumed by the insurer; or
(3) The insurer in good faith would either not have issued the policy or contract, or would not have issued a policy or contract at the premium rate as applied for, or would not have issued a policy or contract in as large an amount or would not have provided coverage with respect to the hazard resulting in the loss if the true facts had been made known to the insurer as required either by the application for the policy or contract or otherwise.
(b) No plea of misrepresentation or fraud in connection with the issuance of a life insurance policy or annuity contract shall be filed unless accompanied by a payment into court of all premiums paid on the policy or contract.
(Code 1940, T. 28, §6; Acts 1971, No. 407, p. 707, §320.)
Notes of Decisions
Cited in 43
cases (5 in the last 5 years), 1979–2025 · leading case: In Re HealthSouth Corp. Ins. Litig., 308 F. Supp. 2d 1253 (N.D. Ala. 2004).
In Re HealthSouth Corp. Ins. Litig., 308 F. Supp. 2d 1253 (N.D. Ala. 2004). “These assumed facts, if proven and not defeated by any defenses, would create a prima facie case for rescission under Alabama Code § 27-14-7, discussed below, if no provisions in the insurance policies provide otherwise, and if all statutory prerequisites are established.”
Patterson v. Liberty Nat. Life Ins. Co., 903 So. 2d 769 (Ala. 2004). “In its motion, Liberty National contended for the first time that Ala.Code 1975, § 27-14-7 gave it the right, based on the misrepresentations in the application, to avoid the policy.”
Alfa Mut. Gen. Ins. Co. v. Oglesby, 711 So. 2d 938 (Ala. 1997). “Alfa raises the following issues: whether the trial court erred (1) in directing a verdict for Oglesby on Alfa's claims of misrepresentation under § 27-14-7, Ala.Code 1975; (2) in failing to charge the jury on misrepresentation made by Oglesby during the application process and…”
State Farm Gen. Ins. v. Oliver, 658 F. Supp. 1546 (N.D. Ala. 1987). “Before closing argument to the jury, State Farm, probably wisely, gave up its alternative invocation of § 27-14-7(a)(l), which is the equivalent of common law fraud, in order to avoid the court’s giving a jury charge describing State Farm's burden on that particular alternative…”
Quality Cas. Ins. Co. v. Ruben, 962 So. 2d 234 (Ala. Civ. App. 2006). “Rather, relying on § 27-14-7, Ala.Code 1975, Quality Casualty alleges that, based on the misrepresentations Otis allegedly made on the application for insurance, it did not have any liability to indemnify or defend under the insurance policy under which the Rubens and Young…”
Nationwide Mut. Fire Ins. v. Guster Law Firm, LLC, 944 F. Supp. 2d 1116 (N.D. Ala. 2013). “Ala.Code § 27-14-7 (1975). "Application for policy — Representations and misrepresentations, etc.”
Caribbean I Owners' Ass'n v. Great Am. Ins., 600 F. Supp. 2d 1228 (S.D. Ala. 2009). “18 For all of the foregoing reasons, the Court finds that genuine issues of material fact on the existence of misrepresentations and the materiality of any such misrepresentation by the insured to the insurer preclude the granting of judgment as a matter of law to Great American…”
Nationwide Mut. Fire Ins. Co. v. Pabon, 903 So. 2d 759 (Ala. 2004). “The insured Pabon testified that she orally answered accurately the questions Nationwide agent Davis orally asked, that Davis then printed from the computer the application form containing corresponding but different questions, and that Pabon did not notice the differences and…”
Loyal Am. Life Ins. v. Mattiace, 679 So. 2d 229 (Ala. 1996). “Since we would not have issued the policy at the premium rate as applied for, it was proper that the policy be rescinded [based on Ala.Code 1975, § 27-14-7]." (Emphasis added.”
Martin v. Pate, 749 F. Supp. 242 (S.D. Ala. 1990). “The defendants argue, however, that due to Martin’s fraud in the application the policy may be rescinded under Ala.Code § 27-14-7 (1986). Of course, generally speaking, federal substantive law, and not state law, governs a claim for benefits under ERISA.”
Baker v. Travelers Ins. Co., 207 F. Supp. 3d 1246 (N.D. Ala. 2016). “Ala. Code § 27-14-7 (1975). "Application for policy—Representations and misrepresentations, etc.”
Nat'l Sav. Life Ins. Co. v. Dutton, 419 So. 2d 1357 (Ala. 1982). “In pertinent part, Code 1975, § 27-14-7, provides: "(a) All statements and descriptions in any application for an insurance policy or annuity contract, or in negotiations therefor, by, or in behalf of, the insured or annuitant shall be deemed to be representations and not…”
— Ala. Code § 27-14-7(a) — 12 cases
Caribbean I Owners' Ass'n v. Great Am. Ins., 600 F. Supp. 2d 1228 (S.D. Ala. 2009). “18 For all of the foregoing reasons, the Court finds that genuine issues of material fact on the existence of misrepresentations and the materiality of any such misrepresentation by the insured to the insurer preclude the granting of judgment as a matter of law to Great American…”
In Re HealthSouth Corp. Ins. Litig., 308 F. Supp. 2d 1253 (N.D. Ala. 2004). “These assumed facts, if proven and not defeated by any defenses, would create a prima facie case for rescission under Alabama Code § 27-14-7, discussed below, if no provisions in the insurance policies provide otherwise, and if all statutory prerequisites are established.”
Alfa Mut. Gen. Ins. Co. v. Oglesby, 711 So. 2d 938 (Ala. 1997). “Alfa raises the following issues: whether the trial court erred (1) in directing a verdict for Oglesby on Alfa's claims of misrepresentation under § 27-14-7, Ala.Code 1975; (2) in failing to charge the jury on misrepresentation made by Oglesby during the application process and…”
Quality Cas. Ins. Co. v. Ruben, 962 So. 2d 234 (Ala. Civ. App. 2006). “Rather, relying on § 27-14-7, Ala.Code 1975, Quality Casualty alleges that, based on the misrepresentations Otis allegedly made on the application for insurance, it did not have any liability to indemnify or defend under the insurance policy under which the Rubens and Young…”
Nationwide Mut. Fire Ins. v. Guster Law Firm, LLC, 944 F. Supp. 2d 1116 (N.D. Ala. 2013). “Ala.Code § 27-14-7 (1975). "Application for policy — Representations and misrepresentations, etc.”
— Ala. Code § 27-14-7(a)(1) — 2 cases
Alfa Mut. Gen. Ins. Co. v. Oglesby, 711 So. 2d 938 (Ala. 1997). “Alfa raises the following issues: whether the trial court erred (1) in directing a verdict for Oglesby on Alfa's claims of misrepresentation under § 27-14-7, Ala.Code 1975; (2) in failing to charge the jury on misrepresentation made by Oglesby during the application process and…”
Allied World Surplus Lines Ins. Co. v. Lovette Props. LLC (N.D. Ala. 2024).
— Ala. Code § 27-14-7(a)(1975) — 1 case
Holt v. Am. Modern Home Ins. Co. (N.D. Ala. 2023).
— Ala. Code § 27-14-7(a)(2) — 8 cases
In Re HealthSouth Corp. Ins. Litig., 308 F. Supp. 2d 1253 (N.D. Ala. 2004). “These assumed facts, if proven and not defeated by any defenses, would create a prima facie case for rescission under Alabama Code § 27-14-7, discussed below, if no provisions in the insurance policies provide otherwise, and if all statutory prerequisites are established.”
State Farm Gen. Ins. v. Oliver, 658 F. Supp. 1546 (N.D. Ala. 1987). “Before closing argument to the jury, State Farm, probably wisely, gave up its alternative invocation of § 27-14-7(a)(l), which is the equivalent of common law fraud, in order to avoid the court’s giving a jury charge describing State Farm's burden on that particular alternative…”
Nationwide Mut. Fire Ins. v. Guster Law Firm, LLC, 944 F. Supp. 2d 1116 (N.D. Ala. 2013). “Ala.Code § 27-14-7 (1975). "Application for policy — Representations and misrepresentations, etc.”
Nationwide Mut. Fire Ins. Co. v. Pabon, 903 So. 2d 759 (Ala. 2004). “The insured Pabon testified that she orally answered accurately the questions Nationwide agent Davis orally asked, that Davis then printed from the computer the application form containing corresponding but different questions, and that Pabon did not notice the differences and…”
Aetna Cas. & Sur. Co. v. H. Ray Evers, 590 F.2d 600 (5th Cir. 1979).
— Ala. Code § 27-14-7(a)(3) — 11 cases
In Re HealthSouth Corp. Ins. Litig., 308 F. Supp. 2d 1253 (N.D. Ala. 2004). “These assumed facts, if proven and not defeated by any defenses, would create a prima facie case for rescission under Alabama Code § 27-14-7, discussed below, if no provisions in the insurance policies provide otherwise, and if all statutory prerequisites are established.”
State Farm Gen. Ins. v. Oliver, 658 F. Supp. 1546 (N.D. Ala. 1987). “Before closing argument to the jury, State Farm, probably wisely, gave up its alternative invocation of § 27-14-7(a)(l), which is the equivalent of common law fraud, in order to avoid the court’s giving a jury charge describing State Farm's burden on that particular alternative…”
Quality Cas. Ins. Co. v. Ruben, 962 So. 2d 234 (Ala. Civ. App. 2006). “Rather, relying on § 27-14-7, Ala.Code 1975, Quality Casualty alleges that, based on the misrepresentations Otis allegedly made on the application for insurance, it did not have any liability to indemnify or defend under the insurance policy under which the Rubens and Young…”
Alfa Mut. Gen. Ins. Co. v. Oglesby, 711 So. 2d 938 (Ala. 1997). “Alfa raises the following issues: whether the trial court erred (1) in directing a verdict for Oglesby on Alfa's claims of misrepresentation under § 27-14-7, Ala.Code 1975; (2) in failing to charge the jury on misrepresentation made by Oglesby during the application process and…”
Baker v. Travelers Ins. Co., 207 F. Supp. 3d 1246 (N.D. Ala. 2016). “Ala. Code § 27-14-7 (1975). "Application for policy—Representations and misrepresentations, etc.”
— Ala. Code § 27-14-7(a)(l) — 3 cases
State Farm Gen. Ins. v. Oliver, 658 F. Supp. 1546 (N.D. Ala. 1987). “Before closing argument to the jury, State Farm, probably wisely, gave up its alternative invocation of § 27-14-7(a)(l), which is the equivalent of common law fraud, in order to avoid the court’s giving a jury charge describing State Farm's burden on that particular alternative…”
In Re HealthSouth Corp. Ins. Litig., 308 F. Supp. 2d 1253 (N.D. Ala. 2004). “These assumed facts, if proven and not defeated by any defenses, would create a prima facie case for rescission under Alabama Code § 27-14-7, discussed below, if no provisions in the insurance policies provide otherwise, and if all statutory prerequisites are established.”
Liberty Corp. Capital Ltd. v. Club Exclusive, Inc., 262 F. Supp. 3d 1288 (N.D. Ala. 2017).
— Ala. Code § 27-14-7(b) — 1 case
Patterson v. Liberty Nat. Life Ins. Co., 903 So. 2d 769 (Ala. 2004). “In its motion, Liberty National contended for the first time that Ala.Code 1975, § 27-14-7 gave it the right, based on the misrepresentations in the application, to avoid the policy.”
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