What is the legal significance of a material concealment by an insurance applicant?
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 concealment.
D) The insurer is immediately entitled to a higher premium.
Question 2
A false material statement made by an applicant for insurance is an example of
A) concealment.
B) breach of warranty.
C) lack of offer and acceptance.
D) misrepresentation.
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