What must occur for a contract to be avoided ab initio due to misrepresentation?

For a contract to be avoided ab initio due to misrepresentation, it is essential that the insured has intentionally provided false details. Misrepresentation refers to a situation where a party has made false statements that induce another party to enter into a contract. If these statements are made knowingly or recklessly—meaning the person was aware the information was false or was indifferent to its truth—the injured party (in this case, the insurer) can void the contract from the beginning, or "ab initio."

Intentional misrepresentation is a key factor because it demonstrates the lack of good faith on the part of the insured. Unlike innocent misrepresentation, where a party mistakenly provides incorrect information without any fraudulent intent, intentional misrepresentation involves a deliberate act to mislead the insurer, which is a breach of the principles of utmost good faith fundamental to insurance contracts.

Moreover, intention behind the misrepresentation is crucial, as simply providing incorrect information without intent does not warrant avoidance of the contract. Therefore, intentional provision of false details directly correlates to the contract being voided ab initio due to misrepresentation.