For an insurance applicant's misrepresentation to have legal consequences:
A)the insurer need not have relied on it as an inducement to enter the contract.
B)the misrepresentation must be material.
C)the applicant must have known it was false at the time the applicant made the statement.
D)All of the above.

Question

Quizplus · Accepted Answer

For an insurance applicant's misrepresentation to have legal consequences, it must be material. This means that it must be important enough to influence the insurer's decision to enter the contract. The insurer must also have relied on the misrepresentation as an inducement to enter the contract. The applicant's knowledge of the falsity of the statement at the time it was made is not required for legal consequences.

For an Insurance Applicant's Misrepresentation to Have Legal Consequences