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.


Answer: B

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Answer the following statement true (T) or false (F)

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Indicate whether the statement is true or false

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What will be an ideal response?

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