Identify the misrepresentation under which an insurance contract would be voidable.
A)You stated in an application for life insurance that you were born on March 2 when in fact you were born on March 12.
B)You apply for life insurance and state that you are in good health, when in fact, you have a cold.
C)By mistake, you stated in an application for life insurance that you were born on 1980, when in fact you were born on 1984.
D)You state for life insurance that your annual income is $150,000 when in fact it is $200,000.
E)You apply for life insurance and state that you are in good health, even though you've just been diagnosed with a severe heart ailment.

Question

Quizplus · Accepted Answer

Misrepresentations that materially affect the risk assessment of an insurance policy, such as lying about a severe health condition like a heart ailment, can make an insurance contract voidable. This is because the insurer relies on the truthfulness of this information to accurately price and decide on the coverage.

Identify the Misrepresentation Under Which an Insurance Contract Would Be