General Insurance PrinciplesQuestion 190 of 315
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 involves only the applicant's medical history
c.It appears in bold print in the application
d.The applicant verbally acknowledges it during the interview
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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Sen Lin, PrepPass Founder · 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)