Misrepresentation of policy terms, as the name implies, occurs when an insurance company deliberately or unreasonably misrepresents the facts and terms of a policyholder’s contract. The point of this misrepresentation is to issue a denial on an otherwise valid claim. Unfortunately, insurance companies routinely take advantage of an insured’s lack of knowledge to make claim denials. Without technical know-how or knowledge of insurance law, a policyholder might accept a claim denial that’s actually worthy of reimbursement.