General Insurance PrinciplesQuestion 190 of 315
Under California law, a fact is considered material if:
a.The applicant verbally acknowledges it during the interview
b.Its disclosure would influence a prudent insurer in issuing the policy or setting the premium
c.It appears in bold print in the application
d.It involves only the applicant's medical history
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 §334Practice all 315 questions free — no signup required.
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