General Insurance PrinciplesQuestion 190 of 716
Under California law, a fact is considered material if:
a.Its disclosure would influence a prudent insurer in issuing the policy or setting the premium
b.It concerns the applicant's medical history, since only medical facts can ever be material
c.It appears in bold print on the face of the insurer's printed written application form
d.The applicant verbally acknowledges it during the underwriting interview with the producer
Explanation
Cal. Ins. Code §334 states that materiality is determined by the probable and reasonable influence of the facts upon the party to whom the communication is due, in forming his estimate of the disadvantages of the proposed contract, or in making his inquiries.
Law Reference: Cal. Ins. Code §334This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)