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:

Protective Equipment

Gear designed to safeguard individuals from physical, chemical, and biological hazards.

Chlorinated Hydrocarbons

A group of chemical compounds that contain carbon, hydrogen, and chlorine, often used in industrial applications.

Biologically Magnified

The process by which the concentration of a toxin increases as it moves through successive levels of a food chain.

Integrated Pest Management

A sustainable approach to managing pests by combining biological, cultural, physical, and chemical tools in a way that minimizes economic, health, and environmental risks.