Oklahoma § 36-3609 - Representations in applications - Recovery under policy Mortgage guaranty policies

§ 36-3609. Representations in applications - Recovery under policy Mortgage guaranty policies

A. All statements and descriptions in any application for an

insurance policy or in negotiations therefor, by or in behalf of the

insured, 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 unless:

1. Fraudulent; or

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 would not have issued a policy 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

otherwise.

B. Subsection A of this section shall not be applicable to

mortgage guaranty insurance, as hereinafter defined.

Misrepresentations, omissions, concealment of facts and incorrect

statements shall not prevent a recovery under a policy of mortgage

guaranty insurance unless material and fraudulent. As used herein,

the term "mortgage guaranty insurance" means a form of casualty or

surety insurance insuring lenders against financial loss by reason

of nonpayment of principal, interest and other sums agreed to be

paid under the terms of any note, bond or other evidence of

indebtedness secured by a mortgage, deed of trust or other

instrument constituting a lien or charge on real estate which

contains a residential building or a building designed to be

occupied for industrial or commercial purposes.

Laws 1957, p. 365, § 3609.