What Is the Legal Significance of a Material Misrepresentation in an Insurance

question 1

Multiple Choice

What is the legal significance of a material misrepresentation in an insurance application?

• A)The contract is automatically voided from its inception.
• B)The contract is voidable at the insurer's option.
• C)Loss payments are reduced by the degree of the misrepresentation.
• D)The insurer is immediately entitled to a higher premium.

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Definitions:

Mammals

Warm-blooded vertebrates characterized by the presence of mammary glands, which females use to feed their young, and usually hair or fur on their bodies.

Aquatic Animals

Animals that live in water for most or all of their lives, including fish, amphibians, and various invertebrates, adapted to their liquid environment in various ways.

Wood Lice

Terrestrial crustaceans from the order Isopoda, known for their ability to roll into a ball as a defense mechanism; commonly found in moist environments.

Osmoconformers

Organisms that maintain internal osmotic pressure that is in balance with that of their surrounding environment.