General Insurance PrinciplesQuestion 133 of 474
Under California Insurance Code §331, a MATERIAL concealment by the applicant entitles the insurer to rescind the policy:
a.Only after the policy has been in force for two years
b.Only if the concealment was intentional and fraudulent
c.Only if the concealment caused the loss
d.Whether the concealment was intentional or unintentional
Explanation
Section 331 is one of the toughest rules for applicants: any MATERIAL concealment lets the insurer rescind, regardless of intent. There is no California 'incontestability' period for property and casualty policies; the two-year incontestability rule is a LIFE insurance concept.
Law Reference: Cal. Ins. Code §331This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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