Author Question: What is the legal significance of a material misrepresentation in an insurance application? A) ... (Read 55 times)

geoffrey · **on:** Jul 11, 2018

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.

Question 2

Which of the following statements about subrogation is true?

A) It is used primarily for losses paid under life insurance policies.
B) It allows the insurer to sue its own insured who is negligent.
C) The insured's right to collect benefits may be forfeited if the insured interferes with the insurer's subrogation rights after a loss occurs.
D) The insurer is required to exercise its subrogation rights.