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:

Marriott International

Marriott International is a multinational diversified hospitality company that manages and franchises a broad portfolio of hotels and related lodging facilities around the world.

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The core beliefs and values upon which an organization is established, influencing its vision, strategy, and culture.

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A style of leadership characterized by hierarchical structure, discipline, and the ability to command, motivate, and inspire soldiers in high-pressure situations.

Mission First

A principle emphasizing the importance of prioritizing the organization's core objectives over individual or secondary considerations.