§ 26-15-109 — Statements in applications as representations and not as warranties; misrepresentations

(a) Any statements and descriptions in any application for
an insurance policy or annuity contract, by or in behalf of the
insured or annuitant, are representations and not warranties.
Misrepresentations, omissions, concealment of facts and
incorrect statements do not prevent a recovery under the policy
or contract unless either:
(i) Fraudulent; or
(ii) Material either to the acceptance of the risk,
or to the hazard the insurer assumes; or
(iii) The insurer in good faith, if it knew the true
facts as required by the application for the policy or contract
or otherwise, would not have:
(A) Issued the policy or contract;
(B) Issued it at the same premium rate;
(C) Issued a policy or contract in as large an
amount; or
(D) Provided coverage with respect to the hazard
resulting in the loss.